IDEAS home Printed from https://ideas.repec.org/a/ags/jasfmr/189885.html
   My bibliography  Save this article

Is Canadian Farmland Overpriced?

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/189885/files/292_painter.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.189885?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. 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.
    3. Helmers, Glenn & Shaik, Saleem & Johnson, Bruce, 2005. "Forecasting Agricultural Land Values in the Midwest States1," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2005, pages 1-8.
    4. Ward P. Weisensel & Richard A. Schoney & G. C. Kooten, 1988. "Where Are Saskatchewan Farmland Prices Headed?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 36(1), pages 37-50, March.
    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.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Feichtinger, Paul & Salhofer, Klaus, 2011. "The Valuation of Agricultural Land and the Influence of Government Payments," Factor Markets Working Papers 112, Centre for European Policy Studies.
    3. 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.
    4. Jean Cavailhès & Alban Richard & Nathalie Taverdet, 1996. "Des rentes classiques aux options de rentes. Une analyse de l'évolution du prix des terres en France," Revue Économique, Programme National Persée, vol. 47(4), pages 963-981.
    5. 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.
    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. Titus O. Awokuse & Joshua M. Duke, 2006. "The Causal Structure of Land Price Determinants," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(2), pages 227-245, June.
    8. 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.
    9. Oltmer, Katrin & Florax, Raymond J.G.M., 2001. "Impacts Of Agricultural Policy Reform On Land Prices: A Quantitative Analysis Of The Literature," 2001 Annual meeting, August 5-8, Chicago, IL 20507, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Sanchirico, James & Newell, Richard & Papps, Kerry, 2005. "Asset Pricing in Created Markets for Fishing Quotas," RFF Working Paper Series dp-05-46, Resources for the Future.
    11. Patrick de Fontnouvelle & Sergio H. Lence, 2002. "Transaction Costs and the Present Value “Puzzle” of Farmland Prices," Southern Economic Journal, John Wiley & Sons, vol. 68(3), pages 549-565, January.
    12. Lin, Haixia & Wu, JunJie, 2005. "Conservation Policy and Land Value: The Conservation Reserve Program," 2005 Annual meeting, July 24-27, Providence, RI 19417, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. 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.
    14. Barrett E. Kirwan & Michael J. Roberts, 2016. "Who Really Benefits from Agricultural Subsidies? Evidence from Field-level Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 1095-1113.
    15. Mishra, Ashok K. & Moss, Charles B. & Erickson, Kenneth W., 2004. "Effect Of Debt Solvency On Farmland Values: A Panel Cointegration Approach," 2004 Annual meeting, August 1-4, Denver, CO 20261, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. 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.
    17. Styan, Jacob & Boerngen, Maria A. & Barrowclough, Michael J., 2021. "Factors Influencing Increased Usage of Cash Rent Leases in Illinois," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2021.
    18. Lautrup, M. & Panduro, T.E. & Olsen, J.V. & Pedersen, M.F. & Jacobsen, J.B., 2023. "Is there more to trees than timber? Estimating the private amenity value of forests using a hedonic land model for combined agricultural properties," Forest Policy and Economics, Elsevier, vol. 146(C).
    19. Buchholz, Matthias & Danne, Michael & Musshoff, Oliver, 2022. "An experimental analysis of German farmers’ decisions to buy or rent farmland," Land Use Policy, Elsevier, vol. 120(C).
    20. Sandrey, Ronald A. & Arthur, Louise M. & Oliveira, Ronald A. & Wilson, W. Robert, 1982. "Determinants Of Oregon Farmland Values: A Pooled Cross-Sectional, Time Series Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(2), pages 1-10, December.

    More about this item

    Keywords

    Agricultural Finance; 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:jasfmr:189885. 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/asfmrea.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.