The Changing Roles of Urban Influence and Agricultural Productivity in Farmland Price Determination

Between 2000 and 2010, inflation-adjusted U.S. farmland values increased by over 80%. This period of rapid price appreciation coincided with both the agricultural commodity price boom and the broader financial crisis. This paper examines the degree to which the determinants of farmland prices change...

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Bibliographic Details
Published in:Land economics 2018-05, Vol.94 (2), p.199-205
Main Authors: Hanson, Erik D., Sherrick, Bruce J., Kuethe, Todd H.
Format: Article
Language:English
Subjects:
Agricultural commodities
Agricultural economics
Agricultural land
Agricultural policy
Agricultural production
Appreciation
Commodity prices
Counties
Declarations
Economic crisis
Farmers
Farms
Inflation
Owners
Policy making
Productivity
Urban agriculture
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Summary:Between 2000 and 2010, inflation-adjusted U.S. farmland values increased by over 80%. This period of rapid price appreciation coincided with both the agricultural commodity price boom and the broader financial crisis. This paper examines the degree to which the determinants of farmland prices changed over this period, using a panel of farmland transfer declarations from 98 Illinois counties. Hedonic price analysis demonstrates that the relative importance of urban influence decreased over this period, while the relative importance of agricultural productivity increased. The study carries important implications for farmers, farmland owners, and policy makers.
ISSN:0023-7639
1543-8325
DOI:10.3368/le.94.2.199