The Impacts of Non-local Buyers on Farmland Market in Alabama

Yingyun Lin, Mykel Taylor and Sunjae Won

Journal of the ASFMRA, 2026, vol. 2026

Abstract: Previous studies show that non-local buyers typically pay a price premium for farmland but most adopt a simple dummy variable to measure buyers’ non-locality, which neglects the heterogeneity among non-local buyers. Utilizing a parcel-level farmland transaction dataset, we construct a distance-based variable to measure buyers’ non-locality, using multiple regression to investigate their impacts on farmland market. Our results indicate that an additional 1% buyer-toparcel distance can lead to farmland price increase by 4.3%, suggesting that buyers located farther away typically pay more for land. It is probably because they face greater asymmetric information and possess more limited local market knowledge.

Keywords: Agricultural Finance; Farm Management; Land Economics/Use (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jasfmr:410271

DOI: 10.22004/ag.econ.410271

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