Impacts of U.S. Agricultural and Ethanol Policies on Farmland Values and Rental Rates

Jaclyn D. Kropp and Janet G. Peckham

No 124579, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: Prices for prime farmland have increased significantly in recent years. But, is the dramatic increase the result of a speculative bubble or is it consistent with market fundamentals with increases driven by growing global demand and recent changes to U.S. agricultural and energy policies? This research investigates the impacts of recent agricultural support policies and ethanol policies on farmland values and rental rates. Using weighted ordinary least squares and two stage least squares, we find that government payments, urban pressure and the proximity of the farm to an ethanol facility have a positive impact on both farmland values and rental rates.

Keywords: Agricultural and Food Policy; Agricultural Finance; Land Economics/Use (search for similar items in EconPapers)
Pages: 40
Date: 2012
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea12:124579

DOI: 10.22004/ag.econ.124579

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