IDEAS home Printed from https://ideas.repec.org/a/ags/arerjl/31490.html
   My bibliography  Save this article

Agricultural Land Use Choice: A Discrete Choice Approach

Author

Listed:
  • Claassen, Roger
  • Tegene, Abebayehu

Abstract

A discrete choice model and site-specific data are used to analyze land use choices between crop production and pasture in the Corn Belt. The results show that conversion probabilities depend on relative returns, land quality, and government policy. In general it is found that landowners are less inclined to remove land from crop production than to convert land to crop production.

Suggested Citation

  • Claassen, Roger & Tegene, Abebayehu, 1999. "Agricultural Land Use Choice: A Discrete Choice Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(1), pages 1-11, April.
  • Handle: RePEc:ags:arerjl:31490
    DOI: 10.22004/ag.econ.31490
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31490/files/28010026.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.31490?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Osborn, C. Tim & Liacuna, Felix & Linsenbigler, Michael, 1989. "Conservation Reserve Program: Enrollment Statistics for 1987-88 and Signup Periods 1-7," Statistical Bulletin 154688, United States Department of Agriculture, Economic Research Service.
    2. Richard E. Just & John A. Miranowski, 1993. "Understanding Farmland Price Changes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 156-168.
    3. Raymond B. Palmquist, 1989. "Land as a Differentiated Factor of Production: A Hedonic Model and Its Implications for Welfare Measurement," Land Economics, University of Wisconsin Press, vol. 65(1), pages 23-28.
    4. Jones, John & Hexem, Roger W., 1990. "Cash Rents for Farms, Cropland, and Pasture, 1960-89," Statistical Bulletin 154719, United States Department of Agriculture, Economic Research Service.
    5. James S. Eales & Brian K. Engel & Robert J. Hauser & Sarahelen R. Thompson, 1990. "Grain Price Expectations of Illinois Farmers and Grain Merchandisers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 701-708.
    6. Oscar R. Burt, 1986. "Econometric Modeling of the Capitalization Formula for Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 10-26.
    7. Tegene, Abebayehu & Kuchler, Frederick R, 1991. "A Description of Farmland Investor Expectations," The Journal of Real Estate Finance and Economics, Springer, vol. 4(3), pages 283-296, September.
    8. Barry Falk, 1991. "Formally Testing the Present Value Model of Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 1-10.
    9. Shih-Hsun Hsu & Ching-Cheng Chang, 1990. "An Adjustment-Cost Rationalization of Asset Fixity Theory," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 298-308.
    10. Andrew J. Plantinga, 1996. "The Effect of Agricultural Policies on Land Use and Environmental Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1082-1091.
    11. Ian W. Hardie & Peter J. Parks, 1997. "Land Use with Heterogeneous Land Quality: An Application of an Area Base Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 299-310.
    12. Clark Edwards, 1959. "Resource Fixity and Farm Organization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 41(4), pages 747-759.
    13. Erik Lichtenberg, 1989. "Land Quality, Irrigation Development, and Cropping Patterns in the Northern High Plains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(1), pages 187-194.
    14. Falk, Barry L., 1991. "Formally Testing the Present Value Model of Farmland Prices," Staff General Research Papers Archive 11093, Iowa State University, Department of Economics.
    15. Stavins, Robert N & Jaffe, Adam B, 1990. "Unintended Impacts of Public Investments on Private Decisions: The Depletion of Forested Wetlands," American Economic Review, American Economic Association, vol. 80(3), pages 337-352, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Raja Chakir & Olivier Parent, 2009. "Determinants of land use changes: A spatial multinomial probit approach," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 327-344, June.
    2. Markowski-Lindsay, Marla & Butler, Brett J. & Caputo, Jesse & Newman, David & Zhang, Daowei & Wear, David, 2024. "Distribution and dynamics of private forests across the United States," Forest Policy and Economics, Elsevier, vol. 159(C).
    3. Breustedt, Gunnar & Schulz, Norbert & Latacz-Lohmann, Uwe, 2013. "Ermittlung der Teilnahmebereitschaft an Vertragsnaturschutzprogrammen und der dafür notwendigen Ausgleichszahlungen mit Hilfe eines Discrete-Choice-Experimentes," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(04), pages 1-15, November.
    4. Stavins, Robert & Plantinga, Andrew & Lubowski, Ruben, 2003. "Determinants of Land-Use Change In the United States 1982-1997," RFF Working Paper Series dp-03-47, Resources for the Future.
    5. Michael J. Roberts & Ruben N. Lubowski, 2007. "Enduring Impacts of Land Retirement Policies: Evidence from the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 83(4), pages 516-538.
    6. Breustedt, Gunnar & Schulz, Norbert & Latacz-Lohmann, Uwe, 2013. "Ermittlung der Teilnahmebereitschaft an Vertragsnaturschutzprogrammen und der dafür notwendigen Ausgleichszahlungen mit Hilfe eines Discrete-Choice-Experimentes," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(4).
    7. Alain Carpentier & Elodie Letort, 2014. "Multicrop Production Models with Multinomial Logit Acreage Shares," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(4), pages 537-559, December.
    8. Claassen, Roger & Lubowski, Ruben N. & Roberts, Michael J., 2005. "Extent, Location, and Characteristics of Land Cropped Due to Insurance Subsidies," 2005 Annual meeting, July 24-27, Providence, RI 19546, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Li, Sheng & Nadolnyak, Denis & Hartarska, Valentina, 2019. "Agricultural land conversion: Impacts of economic and natural risk factors in a coastal area," Land Use Policy, Elsevier, vol. 80(C), pages 380-390.
    10. Plantinga, Andrew J. & Ahn, Soeun, 2002. "Efficient Policies For Environmental Protection: An Econometric Analysis Of Incentives For Land Conversion And Retention," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-18, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laure Latruffe & Chantal Le Mouël, 2009. "Capitalization Of Government Support In Agricultural Land Prices: What Do We Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 23(4), pages 659-691, September.
    2. Fiechter, Chad & Kuethe, Todd & Zhang, Wendong, 2023. "Information Rigidities and Farmland Value Expectations," ISU General Staff Papers 202306131414240000, Iowa State University, Department of Economics.
    3. Li, Xin, 2016. "The Farmland Valuation Revisited," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2), pages 1-14, April.
    4. Newell, Richard G. & Papps, Kerry L. & Sanchirico, James N., 2005. "Asset Pricing in Created Markets for Fishing Quotas," Discussion Papers 10639, Resources for the Future.
    5. Katchova, Ani L. & Sherrick, Bruce J. & Barry, Peter J., 2002. "The Effects Of Risk On Farmland Values And Returns," 2002 Annual meeting, July 28-31, Long Beach, CA 19660, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Albulena Basha & Wendong Zhang & Chad Hart, 2021. "The impacts of interest rate changes on US Midwest farmland values," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 81(5), pages 746-766, February.
    7. Peter Park & Edward Barbier & Joanne Burgess, 1998. "The Economics of Forest Land Use in Temperate and Tropical Areas," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 473-487, April.
    8. Lubowski, Ruben N. & Plantinga, Andrew J. & Stavins, Robert N., 2003. "Determinants of Land-Use Change In the United States 1982-1997," Discussion Papers 10714, Resources for the Future.
    9. B. James Deaton & Chad Lawley, 2022. "A survey of literature examining farmland prices: A Canadian focus," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(2), pages 95-121, June.
    10. Weerahewa, Jeevika & Meilke, Karl D. & Vyn, Richard J. & Haq, Zahoor Ul, 2008. "The Determinants of Farmland Values in Canada," Working Papers 43461, Canadian Agricultural Trade Policy Research Network.
    11. Richard G. Newell & Kerry L. Papps & James N. Sanchirico, 2007. "Asset Pricing in Created Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 259-272.
    12. Carlberg, Jared G., 2002. "Effects Of Ownership Restrictions On Farmland Values In Saskatchewan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(2), pages 1-10, August.
    13. CARPENTIER, Alain & GOHIN, Alexandre & SCKOKAI, Paolo & THOMAS, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(1), March.
    14. Chakir, Raja & Lungarska, Anna, 2015. "Agricultural land rents in land use models: a spatial econometric analysis," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212641, European Association of Agricultural Economists.
    15. Basak Bayramoglu & Raja CHAKIR & Anna LUNGARSKA, 2016. "Land Use and Freshwater Ecosystems in France," EcoMod2016 9420, EcoMod.
    16. Allan, Corey & Kerr, Suzi & Owen, Sally, 2020. "Over-valued or over-looked? A theoretical and empirical investigation of agricultural land values against profitability in Aotearoa New Zealand," Working Paper Series 9129, Victoria University of Wellington, School of Economics and Finance.
    17. Ay, Jean-Sauveur & Latruffe, Laure, 2013. "The Empirical Content of the Present Value Model: A survey of the instrumental uses of farmland prices," Working papers 157112, Factor Markets, Centre for European Policy Studies.
    18. Chonabayashi, Shun, 2014. "Accounting for Land Use Adaptation to Climate Change Impacts on US Agriculture," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170710, Agricultural and Applied Economics Association.
    19. Xu, Jin & Leatham, David J., 2010. "Dynamic Analysis of Land Prices with Flexible Risk Aversion Coefficients," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61872, Agricultural and Applied Economics Association.
    20. Ahrendsen, Bruce L., 1993. "A Structural Approach to Estimating Rate of Return Expectations of Farmers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(2), pages 56-68, December.

    More about this item

    Keywords

    Land Economics/Use;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:arerjl:31490. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/nareaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.