The incidence of foreign market tariffs on farmland rental rates

Jisang Yu, Nelson Villoria and Nathan Hendricks

Food Policy, 2022, vol. 112, issue C

Abstract: We estimate the impact of tariffs faced by US agricultural exports on farmland rents. The localized tariff is determined by the average of tariffs across trading partners for the crops produced within the county. We utilize shift-share designs to avoid endogeneity concerns that arise because factors affecting rents could also affect trade flows and cropping patterns. Using the county-level data from 2008 to 2017, we find that a one percentage point decrease in the localized tariff increases rents by 3%–6%. The 2018 Chinese retaliatory tariffs would have decreased rents by about 3% in the absence of any government support.

Keywords: Farmland rental rate; Tariff; Shift-share design; Randomization inference (search for similar items in EconPapers)
JEL-codes: F13 F14 Q15 Q17 Q18 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:112:y:2022:i:c:s0306919222001130

DOI: 10.1016/j.foodpol.2022.102343

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