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How Spatially Clustered are State-level Farmland Values?

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Listed:
  • Griffin, Terry
  • Ibendahl, Gregg
  • Mark, Tyler

Abstract

Farmland values are influenced by productivity levels, prices of pertinent crops, farm incomes, urban sprawl, and external investment pressure. Since cropping systems in a given region are similar to adjacent regions and soil productivity indexes change slowly across regions, it was expected that farmland values are spatially clustered even at the state level. We tested spatial correlation on US state-level farmland values from 1950 to 2014. Spatial correlation was detected in farmland values and percent changes in farmland values. These results indicate that traditional analysis techniques that ignore values of neighboring states may be dominated by advanced spatial analysis. Evaluation of state-level farmland values provide appraisers with insights into how a shock to farmland values impact values in surrounding states. Future analyses will validate these results by examining available sub-state and county-level data.

Suggested Citation

  • Griffin, Terry & Ibendahl, Gregg & Mark, Tyler, 2015. "How Spatially Clustered are State-level Farmland Values?," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2015.
    • Handle: RePEc:ags:jasfmr:235188
    DOI: 10.22004/ag.econ.235188
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    References listed on IDEAS

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    1. Anita Regmi, 1997. "Spatial, Productivity, and Environmental Determinants of Farmland Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1657-1664.
    2. Cotteleer, Geerte & Stobbe, Tracy & van Kooten, G. Cornelis, 2008. "A Spatial Bayesian Hedonic Pricing Model of Farmland Values," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44137, European Association of Agricultural Economists.
    3. Paulson, Nicholas, 2013. "The Impact of Revenues and Costs on the Relative Returns of Illinois Grain Farms," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2013, pages 1-14, June.
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    Keywords

    Farm Management; Land Economics/Use;

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