To Invest or to Sell? The Impacts of Ontario's Greenbelt on Farm Exit and Investment Decisions

Na Li, Richard Vyn and Ken McEwan

No 212049, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: This paper examines the impact of Ontario’s Greenbelt legislation, a land use policy that permanently protects over 1.8 million acres of land from non-agricultural development, on farmers’ exit and investment decisions. A farm-level panel data set for 32,512 farms in Ontario is used to perform two econometric estimations: a correlated random effects Probit model of farm exit and a dynamic unobserved effects Tobit model of farm investment. The Greenbelt policy is found to have influenced both farm exit and farm investment decisions, with the impact varying depending on location within the Greenbelt. In particular, the results indicate evidence of a negative impact on farm investment, which is contrary to one of the objectives of the Greenbelt policy.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 31
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-dcm and nep-env
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Journal Article: To Invest or Sell? The Impacts of Ontario’s Greenbelt on Farm Exit and Investment Decisions (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:212049

DOI: 10.22004/ag.econ.212049

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