Modeling the effect of off-farm income on farmland values: A quantile regression approach

Ashok Mishra () and Charles Moss

Economic Modelling, 2013, vol. 32, issue C, 361-368

Abstract: Using the farm household as a unit of analysis and farm-level data, this study examines the impact of off-farm income on farmland values. In contrast to previous studies that assume a homogeneous relationship across the entire distribution, in this study quantile regression is used to estimate the empirical model. Results of this study show the effect of land attributes—captured by regional location and farm program payments; off-farm income on value of farmland can be better explained by estimating quantile regression across farmland value categories. Results indicate that a 1percent increase in off-farm income could increase per-acre farmland value between 0.15 and 0.21%.

Keywords: Farmland value; Off-farm income; Farm household; Quantile regression; Ordinary least squares; Farm program payments; Gross cash income; Direct payments; Indirect payments (search for similar items in EconPapers)
JEL-codes: D13 D44 G12 Q14 Q24 R38 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:32:y:2013:i:c:p:361-368

DOI: 10.1016/j.econmod.2013.02.022

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