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Amenity benefits and public policy: An application to the Georgia Pecan Industry

Listed author(s):
  • Sande, Doris N.
  • Mullen, Jeffrey D.
  • Nzaku, Kilungu

Most agricultural production results in both marketable and non-marketable products. Most policy decisions however, tend to be made based only on the market value, which ignores the non-marketable value or amenity benefits. One type of amenity benefits is farmland amenities which are attributes of farmland that are uniquely provided by actively farmed land. Examples include the scenic beauty of rolling pasture, orchards and the cultural value of farming as a way of life. Farmland also produces non-farm amenities, such as open space, wildlife habitats, and groundwater recharge. Most amenity benefits are classified as public goods in that they are non-excludable and non-rival in terms of use. Thus, most amenities do not have a market value associated with them so that their value can not be captured by landowners and therefore are subject to market failure. This failure leads to government intervention in an effort to encourage and support agriculture with programs for farmers through various public policies. Failure to include amenity benefits results in under-allocation of resources like land towards pecan production.

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Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46851.

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Date of creation: Feb 2009
Handle: RePEc:ags:saeana:46851
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  1. Bergstrom, John C. & Dillman, B. L. & Stoll, John R., 1985. "Public Environmental Amenity Benefits of Private Land: The Case of Prime Agricultural Land," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(01), pages 139-149, July.
  2. Elnagheeb, Abdelmoneim H. & Florkowski, Wojciech J., 1993. "Modeling Perennial Crop Supply: An Illustration from the Pecan Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(01), pages 187-196, July.
  3. Elnagheeb, Abdelmoneim H. & Florkowski, Wojciech J., 1993. "Modeling Perennial Crop Supply: An Illustration From The Pecan Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(01), July.
  4. Aliza Fleischer & Yacov Tsur, 2003. "Measuring the Recreational Value of Open Space," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(2), pages 269-283.
  5. Kan, Iddo & Haim, David & Rapaport-Rom, Mickey & Shechter, Mordechai, 2009. "Environmental amenities and optimal agricultural land use: The case of Israel," Ecological Economics, Elsevier, vol. 68(6), pages 1893-1898, April.
  6. Richard C. Ready & Charles W. Abdalla, 2005. "The Amenity and Disamenity Impacts of Agriculture: Estimates from a Hedonic Pricing Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 314-326.
  7. Okunade, Albert A. & Cochran, Mark J., 1991. "Functional Forms and Farm-Level Demand for Pecans by Variety," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(02), pages 95-102, December.
  8. Rolf Jens Brunstad & Ivar Gaasland & Erling VĂ¥rdal, 1999. "Agricultural Production and the Optimal Level of Landscape Preservation (," Land Economics, University of Wisconsin Press, vol. 75(4), pages 538-546.
  9. Franz Hackl & Gerald Pruckner, 1997. "Towards More Efficient Compensation Programmes for Tourists' Benefits From Agriculture in Europe," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(2), pages 189-205, September.
  10. Shafer, Carl E., 1989. "Price And Value Effects Of Pecan Crop Forecasts, 1971-1987," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(01), July.
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