The Housing Boom and Its Effect on Farmland Acreage

Anton Bekkerman

No 9697, 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper examines farmers land ownership decision to keep their farmland or sell the acreage to a non-agricultural enterprise. The boom in housing demand during the early 21st century caused a subsequent rise in land demand by housing construction companies. This, in turn, has significant effects on farmer's choice to sell their farmland endowment and leave farming. Data from several public sources, including the USDA-NASS, U.S. Census, BLS, and BEA-REIS, is used to analyze the relationship of farm acreage with housing permit values. The Arellano-Bond dynamic panel estimator is used within a GMM framework to examine land ownership behavior of forward-looking farmers. Results indicate that a rise in demand for new housing significantly influences a farmer's behavior to transfer agricultural acreage out of farming.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Pages: 24
Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/9697/files/sp07be01.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea07:9697

DOI: 10.22004/ag.econ.9697

Access Statistics for this paper

More papers in 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().