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Estimating the Impact of Swine Feedlots on Residential Values in Southern Minnesota

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  • Uter, Zachary
  • Hadrich, Joleen C.

Abstract

A hedonic analysis, or revealed preference analysis, was used to estimate the effect of hog barn proximity on prices of rural residents’ real estate in the southern region of Minnesota using Minnesota Pollution Control Agency (MPCA) and county home sales data. Explanatory variables in the dataset include number of bedrooms and bathrooms, lot size, age of home, year sold, feedlot characteristics, and proximity calculated using GIS software. This analysis included 2,795 observations in Blue Earth County, Jackson County, and Freeborn County from 2017 to 2020 and reveals that homes located between one-half to one mile away from swine feedlots were associated with an increase in value, whereas a distance of less than one-half mile away was not found to have an effect.

Suggested Citation

  • Uter, Zachary & Hadrich, Joleen C., 2023. "Estimating the Impact of Swine Feedlots on Residential Values in Southern Minnesota," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2023, January.
    • Handle: RePEc:ags:jasfmr:342892
    DOI: 10.22004/ag.econ.342892
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    File URL: https://ageconsearch.umn.edu/record/342892/files/Estimating%20the%20Impact%20of%20Swine%20Feedlots%20on%20Residential%20Values%20in%20Southern%20Minnesota.pdf
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    References listed on IDEAS

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    1. Joseph A. Herriges & Silvia Secchik & JBruce A. Babcock, 2005. "Living with Hogs in Iowa: The Impact of Livestock Facilities on Rural Residential Property Values," Land Economics, University of Wisconsin Press, vol. 81(4).
    2. Bayoh, Isaac & Irwin, Elena G. & Roe, Brian E., 2004. "The Value Of Clean Dairy Air: Accounting For Endogeneity And Spatially Correlated Errors In A Hedonic Analyses Of The Impact Of Animal Operations On Local Property Values," 2004 Annual meeting, August 1-4, Denver, CO 20364, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Taff, Steven J. & Tiffany, Douglas G. & Weisberg, Sanford, 1996. "Measured Effects Of Feedlots On Residential Property Values In Minnesota: A Report To The Legislature," Staff Papers 14121, University of Minnesota, Department of Applied Economics.
    4. Richard C. Ready & Charles W. Abdalla, 2005. "The Amenity and Disamenity Impacts of Agriculture: Estimates from a Hedonic Pricing Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 314-326.
    5. Abeles-Allison, Mark & Connor, Larry J., 1990. "An Analysis of Local Benefits and Costs of Michigan Hog Operations Experiencing Environmental Conflicts," Agricultural Economic Report Series 201396, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    1. Thomas, Raymond J. & Myers, Matthew & Pendell, Dustin L. & Taylor, Mykel & Yu, Jisang & Tian, Amanda, 2024. "Impact of Confined Animal Feeding Operations on Agricultural Land Values," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2024, January.

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