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The Impact of Ethanol Plants on Cropland Values in the Great Plains

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  • Henderson, Jason R.
  • Gloy, Brent A.

Abstract

Corn ethanol plants consume large amounts of corn and their location has the potential to alter local crop prices and surrounding agricultural land values. The relationship between ethanol plant location and agricultural land prices is examined using data obtained from the Agricultural Credit Survey administered by the Federal Reserve Bank of Kansas City. The findings indicate that the portion of land price changes attributable to location is consistent with previous estimates of basis changes associated with ethanol plant location. As a result, the land markets appear to be rationally adjusting to the location of ethanol plants.

Suggested Citation

  • Henderson, Jason R. & Gloy, Brent A., 2008. "The Impact of Ethanol Plants on Cropland Values in the Great Plains," Working Papers 51080, Cornell University, Department of Applied Economics and Management.
  • Handle: RePEc:ags:cudawp:51080
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    File URL: http://purl.umn.edu/51080
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    References listed on IDEAS

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    Cited by:

    1. Feichtinger, Paul & Salhofer, Klaus, 2011. "The Valuation of Agricultural Land and the Influence of Government Payments," Working Papers 119103, Factor Markets, Centre for European Policy Studies.
    2. Jason Henderson, 2008. "Will farmland values keep booming?," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 81-104.
    3. Kropp, Jaclyn D. & Peckham, Janet G., 2012. "Impacts of U.S. Agricultural and Ethanol Policies on Farmland Values and Rental Rates," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124579, Agricultural and Applied Economics Association.

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