Noncash Income Transfers and Agricultural Land Values

Mykel Taylor and Gary W. Brester

Review of Agricultural Economics, 2005, vol. 27, issue 4, 526-541

Abstract: Several studies have considered the impact of government cash income transfers to agricultural producers on agricultural land prices. This study examines the effects of a noncash income transfer on agricultural land prices. The impact of the U.S. sugar program on irrigated land prices in Montana is evaluated using a hedonic regression model. The model considers the impacts of sugar beet price and land characteristics on land prices. The results indicate that noncash income transfers generated by the U.S. sugar program have been capitalized into cropland prices.

Date: 2005
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