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Implicit Prices of Wetland Easements in Areas of Production Agriculture

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  • Steven D. Shultz
  • Steven J. Taff

Abstract

Impacts of Fish and Wildlife Service wetland easements on agricultural land values in North Dakota were estimated by regressing sale prices on physical and institutional characteristics of sold parcels. While easements on temporary wetlands did not influence prices, each additional acre of permanent wetland under easement decreased average prices by $321 (–79%). Because non-eased permanent wetlands were shown to reduce land prices by $161/acre, we can estimate the implicit price of a wetland easement per se to be $160/ acre—6% below historical easement payment levels in the study area.

Suggested Citation

  • Steven D. Shultz & Steven J. Taff, 2004. "Implicit Prices of Wetland Easements in Areas of Production Agriculture," Land Economics, University of Wisconsin Press, vol. 80(4).
    • Handle: RePEc:uwp:landec:v:80:y:2004:i:4:p501-512
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    References listed on IDEAS

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    1. Abebayehu Tegene & Keith Wiebe & Betsey Kuhn, 1999. "Irreversible Investment Under Uncertainty: Conservation Easements and the Option to Develop Agricultural Land," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 203-219, May.
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    4. Doss, Cheryl R. & Taff, Steven J., 1996. "The Influence Of Wetland Type And Wetland Proximity On Residential Property Values," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(1), pages 1-10, July.
    5. Charles H. Barnard & Gerald Whittaker & David Westenbarger & Mary Ahearn, 1997. "Evidence of Capitalization of Direct Government Payments into U.S. Cropland Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1642-1650.
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    Citations

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    Cited by:

    1. Tsoodle, Leah J. & Featherstone, Allen M. & Golden, Bill B., 2005. "Estimating the Market Value of Agricultural Land in Kansas Using a Combination of Hedonic and Negative Exponential Techniques," 2005 Agricultural and Rural Finance Markets in Transition, October 3-4, 2005, Minneapolis, Minnesota 132763, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    2. Grout, Cyrus A. & Jaeger, William K. & Plantinga, Andrew J., 2011. "Land-use regulations and property values in Portland, Oregon: A regression discontinuity design approach," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 98-107, March.
    3. Bin, Okmyung & Polasky, Stephen, 2005. "Evidence on the Amenity Value of Wetlands in a Rural Setting," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-14, December.
    4. Carriazo, Fernando & Ready, Richard & Shortle, James, 2013. "Using stochastic frontier models to mitigate omitted variable bias in hedonic pricing models: A case study for air quality in Bogotá, Colombia," Ecological Economics, Elsevier, vol. 91(C), pages 80-88.
    5. Taff, Steven J., 2004. "Evidence of a Market Effect from Conservation Easements," Staff Papers 13611, University of Minnesota, Department of Applied Economics.
    6. Bostian, Moriah B. & Dupraz, Pierre & Minviel, Jean Joseph, 2015. "Production effects of wetland conservation: evidence from France," Working Papers 210465, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    7. Karwowski, Nicole, 2023. "The Effects of Wetland Easements on Agricultural Yields," 2023 Annual Meeting, July 23-25, Washington D.C. 335462, Agricultural and Applied Economics Association.
    8. Shultz, Steven & Pool, Duane, 2005. "The Impact of Combined Grass and Wetland Easements on Agricultural Land Values in South Dakota," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2005, pages 1-6.
    9. Harpankar, Kshama & Taff, Steven J., 2004. "Tracking the Effects of Conservation Easements on Property Tax Valuations," Staff Papers 13493, University of Minnesota, Department of Applied Economics.
    10. Ay, Jean-Sauveur & Latruffe, Laure, 2013. "The Empirical Content of the Present Value Model: A survey of the instrumental uses of farmland prices," Working papers 157112, Factor Markets, Centre for European Policy Studies.
    11. Chad Lawley, 2014. "Changes in Implicit Prices of Prairie Pothole Habitat," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 171-190, June.
    12. Eric Asare & Lloyd‐Smith Patrick & Belcher Kenneth, 2022. "Spatially explicit modeling of wetland conservation costs in Canadian agricultural landscapes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(1), pages 5-19, March.

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    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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