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Effects of Reduced Price and Income Supports on Farmland Rent and Value
Author(s) -
Featherstone Allen M.,
Baker Timothy G.
Publication year - 1988
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/10.2.177
Subject(s) - acre , economics , value (mathematics) , agricultural economics , distribution (mathematics) , market orientation , market price , income distribution , microeconomics , econometrics , agricultural science , mathematics , environmental science , statistics , inequality , management , mathematical analysis
Currently, there is a debate about the appropriate form of future farm policy. This paper analyzes the distribution of land prices under the 1985 programs and under a more market orientation. The problem was studied by using results from an econometric simulation model. Results suggest that by 1990, under average conditions, land prices under both the Market and the 1985 program scenarios could be near the long‐run equilibrium levels of $1121 and $1296 per acre, respectively.