California Farmland Valuation: A Hedonic Approach
The determinants of regional farmland values are evolving over time and the farmland value growth varies by regions. As a result, the new regional farmland valuation models need to be dynamically updated with the changes in public policy, input and output markets and regional environmental amenities. This study used a Hedonic pricing model to examine the key determinants that influence the farmland values in 26 counties of California across the seven regions based on the different crop varieties and county-level economic characteristics. Specifically, we analyzed the relationship between variables that are deemed to influence demand, supply and the agricultural land values. The estimation results show that the farmland value in California is mostly determined by the production, productivities and dollar returns to the tree nuts, citrus and wine grapes. Specifically, higher productivity and net returns contribute to the increase in the farmland values. Urban influence factors have been playing a critical role in affecting the overall farmland value. For example, each additional acre of land converted to urban use raises the farmland value by $0.89 per acre. In addition, high real estate earnings might lead to rising farmland values. However, high farm earnings per capita could lower the farmland value, which suggests a tendency of witching from pursuing economies of scale to pursuing high value-added crop production that needs less farmland. Finally, high per-capita GDP and high population density can increase the farmland values.
|Date of creation:||31 May 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:149991. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.