Analyzing the Relationship Between Institutional Investment and Agricultural Land Prices Using a Hedonic Land Value Model

Hudu Abukari, Kevin Kim and Ayoung Kim

No 360671, 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association

Abstract: We used parcel-level agricultural land transaction data from Mississippi between 2019 and 2023 to examine the relationship between institutional investors and farmland value using the hedonic pricing model. Buyers were classified as individual and non-individual buyers, with non-individual buyers further categorized into institutional investors, agricultural entity buyers, and others using their NAICS codes. Our data indicate a growing presence of non-individual buyers, particularly institutional investors, in the Mississippi farmland market. Regression results from the hedonic pricing model show that non-individual buyers, on average, pay significantly more than individual buyers, with institutional investors paying the highest premium among all buyer types.

Keywords: Agricultural Finance; Farm Management (search for similar items in EconPapers)
Pages: 28
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea25:360671

DOI: 10.22004/ag.econ.360671

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