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Do Agricultural Preservation Programs And Preferential Property Tax Programs Affect Farmland Conversion?

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  • Lynch, Lori

Abstract

This paper examines the impact of having a preservation program on the rate of farmland loss for a 50 year period (1949-1997) in six Mid-Atlantic States: Delaware, Maryland, New York, New Jersey, Pennsylvania, and Virginia. Because farmland loss is affected by changing agricultural profitability, demand for land for non-agricultural purposes, and farmers' alternative employment opportunities, we include variables to control for these factors as well. Because a high rate of farmland loss may actually be the reason a county or state begins a preservation program, we need to determine if this endogeniety is causing biased and inconsistent results. If farmland preservation programs are only in counties with a high rate of farmland loss, then we need to establish what might have been the farmland loss rate if the program had not existed to determine if the program is having an impact.

Suggested Citation

  • Lynch, Lori, 2003. "Do Agricultural Preservation Programs And Preferential Property Tax Programs Affect Farmland Conversion?," 2003 Annual meeting, July 27-30, Montreal, Canada 22100, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea03:22100
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    File URL: http://purl.umn.edu/22100
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    References listed on IDEAS

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    1. Ian W. Hardie & Tulika A. Narayan & Bruce L. Gardner, 2001. "The Joint Influence of Agricultural and Nonfarm Factors on Real Estate Values: An Application to the Mid-Atlantic Region," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 120-132.
    2. David L. Chicoine, 1981. "Farmland Values at the Urban Fringe: An Analysis of Sale Prices," Land Economics, University of Wisconsin Press, vol. 57(3), pages 353-362.
    3. Dhillon, Pritam S. & Derr, Donn A., 1974. "Critical Mass Of Agriculture And The Maintenance Of Productive Open Space," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 3(1:), May.
    4. Yue Jin Shi & Timothy T. Phipps & Dale Colyer, 1997. "Agricultural Land Values under Urbanizing Influences," Land Economics, University of Wisconsin Press, vol. 73(1), pages 90-100.
    5. Nancy E. Bockstael, 1996. "Modeling Economics and Ecology: The Importance of a Spatial Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1168-1180.
    6. Lynch, Lori & Carpenter, Janet, 2003. "Is There Evidence of a Critical Mass in the Mid-Atlantic Agriculture Sector Between 1949 and 1997?," Agricultural and Resource Economics Review, Cambridge University Press, pages 116-128.
    7. Melville McMillan, 1975. ""Open Space Preservation in Developing Areas: An Alternative Policy": Reply," Land Economics, University of Wisconsin Press, vol. 51(4), pages 385-393.
    8. Elena G. Irwin & Nancy E. Bockstael, 2001. "The Problem of Identifying Land Use Spillovers: Measuring the Effects of Open Space on Residential Property Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 698-704.
    9. Gardner, Bruce L., 1994. "Commercial Agriculture in Metropolitan Areas: Economics and Regulatory Issues," Agricultural and Resource Economics Review, Cambridge University Press, pages 100-109.
    10. Cynthia J. Nickerson & Lori Lynch, 2001. "The Effect of Farmland Preservation Programs on Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 341-351.
    11. Hellerstein, Daniel & Nickerson, Cynthia J. & Cooper, Joseph C. & Feather, Peter & Gadsby, Dwight M. & Mullarkey, Daniel J. & Tegene, Abebayehu & Barnard, Charles H., 2002. "Farmland Protection: The Role Of Public Preferences For Rural Amenities," Agricultural Economics Reports 33963, United States Department of Agriculture, Economic Research Service.
    12. Cheshire, Paul & Sheppard, Stephen, 1995. "On the Price of Land and the Value of Amenities," Economica, London School of Economics and Political Science, vol. 62(246), pages 247-267, May.
    13. Geoghegan, Jacqueline & Wainger, Lisa A. & Bockstael, Nancy E., 1997. "Spatial landscape indices in a hedonic framework: an ecological economics analysis using GIS," Ecological Economics, Elsevier, vol. 23(3), pages 251-264, December.
    14. William Lockeretz, 1989. "Secondary Effects on Midwestern Agriculture of Metropolitan Development and Decreases in Farmland," Land Economics, University of Wisconsin Press, vol. 65(3), pages 205-216.
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    Cited by:

    1. Hailu, Yohannes G. & Brown, Cheryl, 2007. "Regional Growth Impacts on Agricultural Land Development: A Spatial Model for Three States," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), April.

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