Premium
Cash Rents and Land Values in U.S. Agriculture
Author(s) -
Robison Lindon J.,
Lins David A.,
VenKataraman Ravi
Publication year - 1985
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241819
Subject(s) - economic rent , valuation (finance) , economics , land values , agriculture , agricultural economics , agricultural land , cash flow , econometrics , land use , inflation (cosmology) , cash , microeconomics , geography , finance , ecology , physics , archaeology , theoretical physics , biology
A firm‐level land valuation model is deduced which depends on the expected growth rate in net cash returns to land, inflation expectations, and property, income, and capital gains taxes. It is then aggregated to obtain an aggregate two‐sector land valuation model. That model is then estimated for twenty‐four individual states for the period 1960–81. In addition, a pooled cross‐sectional regression model is estimated combining the twenty‐four‐state data. The model results demonstrate that significant state differences exist in the land market and that in many states, agricultural land values are influenced by nonagricultural demand for land.