Linking the price of agricultural land to use valuesand amenities

Allison Borchers, Jennifer Ifft, Todd Kuethe

Research output: Contribution to journalArticlepeer-review

Abstract

The recent appreciation in agricultural land values across the United States has raised a number of important questions for farmers, farmland owners, lenders, and policy makers. While traditional economic theory suggests that farmland values are determined by the discounted stream of expected returns, previous research has shown that agricultural land values are actually driven by a complex set of factors. This study leverages the unique characteristics of a national land-based USDA survey on farmland values and cash rents to estimate broad, national-level determinants of the market value of cropland and pastureland. Our results support past research findings that indicate farmland values are only partially explained by agricultural returns. We find that multiple nonagricultural attributes of farmland also contribute to the market value.

Original languageEnglish (US)
Pages (from-to)1307-1320
Number of pages14
JournalAmerican Journal of Agricultural Economics
Volume96
Issue number5
DOIs
StatePublished - Oct 2014
Externally publishedYes

Keywords

  • Cropland
  • Farmland values
  • Pasture

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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