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Returns, Interest Rates, and Inflation: How They Explain Changes in Farmland Values
Author(s) -
Moss Charles B.
Publication year - 1997
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 - 10.2307/1244287
Subject(s) - valuation (finance) , economics , agriculture , inflation (cosmology) , commodity , agricultural economics , land values , payment , rate of return , monetary economics , geography , land use , finance , physics , archaeology , theoretical physics , civil engineering , engineering
Weather in the Corn Belt and northern plains and the elimination of traditional commodity programs have refocused attention on farmland valuation. This study uses a statistical formulation of information provided by individual regressors to examine the sensitivity of farmland values to changes in inflation, returns on agricultural assets, and the cost of capital. The results indicate that inflation provides the most information on changes in farmland values; however, the regional results indicate that regions that tend to be more sensitive to changes in the return on agricultural assets also rely more heavily on government payments.