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New insights on regional differences of the farmland price structure: An extended replication study on the parcel size–price relationship

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  • Henning Schaak
  • Luise Meissner
  • Oliver Musshoff

Abstract

This study adds insights about the nonlinear effect of parcel sizes on farmland prices. Therefore, replications of Ritter et al. (2020, Land Use Policy, DOI: j.landusepol.2020.104771) are performed in four ways. The study contributes to the literature within two dimensions: (i) the geographical scope, which allows insights into regional differences in the price structure for farmland and (ii) the role of assumptions regarding the functional form for the size–price relationship. The results of the extended replication show that the size–price relationship differs between federal states. Further, the results highlight the importance of assumptions imposed on functional forms of nonlinear relationships in hedonic regression studies.

Suggested Citation

  • Henning Schaak & Luise Meissner & Oliver Musshoff, 2023. "New insights on regional differences of the farmland price structure: An extended replication study on the parcel size–price relationship," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1427-1449, September.
    • Handle: RePEc:wly:apecpp:v:45:y:2023:i:3:p:1427-1449
    DOI: 10.1002/aepp.13366
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    References listed on IDEAS

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    1. Ritter, Matthias & Hüttel, Silke & Odening, Martin & Seifert, Stefan, 2020. "Revisiting the relationship between land price and parcel size in agriculture," Land Use Policy, Elsevier, vol. 97(C).
    2. Shan Ma & Scott M. Swinton, 2012. "Hedonic Valuation of Farmland Using Sale Prices versus Appraised Values," Land Economics, University of Wisconsin Press, vol. 88(1), pages 1-15.
    3. B. Wade Brorsen & Damona Doye & Kalyn B. Neal, 2015. "Agricultural Land and the Small Parcel Size Premium Puzzle," Land Economics, University of Wisconsin Press, vol. 91(3), pages 572-585.
    4. Wendong Zhang & Cynthia J. Nickerson, 2015. "Housing Market Bust and Farmland Values: Identifying the Changing Influence of Proximity to Urban Centers," Land Economics, University of Wisconsin Press, vol. 91(4), pages 605-626.
    5. Lehn, Friederike & Bahrs, Enno, 2018. "Analysis of factors influencing standard farmland values with regard to stronger interventions in the German farmland market," Land Use Policy, Elsevier, vol. 73(C), pages 138-146.
    6. D Maddison, 2000. "A hedonic analysis of agricultural land prices in England and Wales," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 27(4), pages 519-532, December.
    7. Haixiao Huang & Gay Y. Miller & Bruce J. Sherrick & Miguel I. Gómez, 2006. "Factors Influencing Illinois Farmland Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 458-470.
    8. Stefan Seifert & Christoph Kahle & Silke Hüttel, 2021. "Price Dispersion in Farmland Markets: What Is the Role of Asymmetric Information?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1545-1568, August.
    9. Tietz, Andreas & Neumann, Richard & Volkenand, Steffen, 2021. "Untersuchung der Eigentumsstrukturen von Landwirtschaftsfläche in Deutschland," Thünen Reports 85, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    10. Miranowski, John & Hammes, B., 1984. "Implicit Prices of Soil Characteristics for Farmland in Iowa," Staff General Research Papers Archive 10706, Iowa State University, Department of Economics.
    11. Tietz, Andreas & Neumann, Richard & Volkenand, Steffen, 2021. "Untersuchung der Eigentumsstrukturen von Landwirtschaftsfläche in Deutschland," Thünen Report 310730, Johann Heinrich von Thünen-Institut (vTI), Federal Research Institute for Rural Areas, Forestry and Fisheries.
    12. Jason Loughrey & Trevor Donnellan & Kevin Hanrahan, 2020. "The Agricultural Land Market in the EU and the Case for Better Data Provision," EuroChoices, The Agricultural Economics Society, vol. 19(1), pages 41-47, April.
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    1. Ölkers, Tim & Kirchner, Ella & Mußhoff, Oliver, 2023. "Terrorism and land use in agriculture: The case of Boko Haram in Nigeria - a replication attempt of the paper by Adelaja & George (2019)," Land Use Policy, Elsevier, vol. 134(C).

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