IDEAS home Printed from https://ideas.repec.org/a/ags/pujafe/303001.html
   My bibliography  Save this article

Impacts of Urbanization on Costs of Production and Land Use in the Central Southern Seaboard: A Farm-Level Analysis

Author

Listed:
  • Nehring, Richard F.
  • Erickson, Kenneth
  • Harris, James M.
  • Hallahan, Charlie
  • Katchova, Ani
  • Badau, Flavius

Abstract

This study uses stochastic production frontier (SPF) and DEA frontier methods to esti-mate the impact of urban influence on the cost of production for traditional corn/ soybeans farms in the Southern Seaboard (excepting Virginia and Alabama). We hypothesize that urban influence decreases the technical efficiency of these farms. Although states in this region are not entirely subject to urban influence, some parts of states in this region are highly urbanized. We find that farmers in urban-influenced locations are less technically efficient than farmers in rural locations in the region examined. During 2002-2014, sto-chastic production frontier and DEA frontier procedures indicate that increasing urban influence leads to a significant decrease in technical efficiency. Our statistical analysis clearly bears out the refrain in popular literature that urban proximity raises the cost for, and decreases the viability of, traditional farms. And seed treatment and pesticide use trends affecting environmental quality (due to old line herbicide applications used to counter weed resistance in GMO crops) suggest the potential for new regulations on farm practices and, hence, costs.

Suggested Citation

  • Nehring, Richard F. & Erickson, Kenneth & Harris, James M. & Hallahan, Charlie & Katchova, Ani & Badau, Flavius, 2018. "Impacts of Urbanization on Costs of Production and Land Use in the Central Southern Seaboard: A Farm-Level Analysis," Journal of Applied Farm Economics, Purdue University, vol. 2(2).
    • Handle: RePEc:ags:pujafe:303001
    DOI: 10.22004/ag.econ.303001
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/303001/files/JAFEImpactsofUrbanization.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.303001?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
    ---><---

    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:pujafe:303001. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/dapurus.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.