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Is Canadian Farmland Overpriced?

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  • Painter, Marvin

Abstract

Farm lobby groups in Canada have consistently argued that there is a farm income crisis. However, the average net worth of Canadian farm families has been two to three times the average net worth of all families. If farm incomes are so persistently low, how and why do farmers continue to farm and purchase farmland at such high prices? A discounted earning model was employed to estimate farmland value in Canada. The overall conclusion is that there is no strong evidence that Canadian farmland is overpriced, as would be expected from the low levels of net farm income.

Suggested Citation

  • Painter, Marvin, 2008. "Is Canadian Farmland Overpriced?," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2008, pages 1-15.
    • Handle: RePEc:ags:jasfmr:189885
    DOI: 10.22004/ag.econ.189885
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    References listed on IDEAS

    as
    1. 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.
    2. Painter, Marvin J., 2004. "The Impact of Political and Economic Culture on Farmland Values in Western Canada," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-7.
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    5. Vasquez, Orestes & Wright, Khaliela S. & Nelson, James R. & Hamilton, Joel R., 2002. "Determining The Effects Of Land Characteristics On Farmland Values In South-Central Idaho," A.E. Research Series 305034, University of Idaho, Department of Agricultural Economics and Rural Sociology.
    6. Emanuel Melichar, 1979. "Capital Gains versus Current Income in the Farming Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 1085-1092.
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    Keywords

    Agricultural Finance; Land Economics/Use;

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