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Linking the Price of Agricultural Land to Use Values and Amenities

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  • Borchers, Allison
  • Ifft, Jennifer
  • Kuethe, Todd H.

Abstract

In many areas throughout the United States, the market value of agricultural land exceeds its use value in agricultural production. This deviation is the result of many factors, including urban influence, recreation, mineral extraction, and other natural amenities. This study examines the drivers of the nonagricultural portion of cropland and pastureland values across the United States using a rich geospatial data framework linked to the USDA’s June Area Survey. The analysis suggests that many natural amenities and urban pressures shape the value of US cropland and pastureland, and that development potential is the largest driver of the nonagricultural component of farmland values.

Suggested Citation

  • Borchers, Allison & Ifft, Jennifer & Kuethe, Todd H., 2013. "Linking the Price of Agricultural Land to Use Values and Amenities," 2014 Allied Social Science Association (ASSA) Annual Meeting, January 3-5, 2014, Philadelphia, PA 161651, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaeass:161651
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    References listed on IDEAS

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    1. Vincent E. Breneman & Richard F. Nehring, 2006. "Urban Sprawl and Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 915-929.
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    Cited by:

    1. Weber, Jeremy G. & Hitaj, Claudia, 2015. "What Can We Learn about Shale Gas Development from Land Values? Opportunities, Challenges, and Evidence from Texas and Pennsylvania," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(02), pages 40-58, August.
    2. Czyżewski, Bazyli & Polcyn, Jan, 0. "Application of perpetual rent model to valorisation of agricultural land," Problems of Agricultural Economics, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    3. Savage, Jeff & Ifft, Jennifer, 2015. "The Impact of Irrigation Restrictions on Cropland Values in Nebraska," Working Papers 250021, Cornell University, Department of Applied Economics and Management.
    4. Li, Xin, 2. "The Farmland Valuation Revisited," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2).
    5. Kim, Taeyoung & Cho, Seong-Hoon & Larson, Eric R. & Armsworth, Paul R., 2014. "Protected area acquisition costs show economies of scale with area," Ecological Economics, Elsevier, vol. 107(C), pages 122-132.
    6. Eugenio Demartini & Anna Gaviglio & Marco Gelati & Daniele Cavicchioli, 2016. "The Effect of Biogas Production on Farmland Rental Prices: Empirical Evidences from Northern Italy," Energies, MDPI, Open Access Journal, vol. 9(11), pages 1-23, November.
    7. Cowley, Cortney, 2016. "The Dispersion of Farmland Values in the Tenth District," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 29-67.

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    Keywords

    Demand and Price Analysis; Land Economics/Use;

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