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Comparative Rents For Farmland And Timberland In A Subregion Of The South

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  • Hardie, Ian W.

Abstract

This study compares equivalent annual rents for two alternative land uses in a region where farming and timber plantations coexist. The comparison is motivated by the possibility that rising timber prices may stimulate timber processors to compete for farmland. Prices, costs, and market rents are assumed to first follow existing trends and then to reach steady state values. Market rents are projected and capitalized for agriculture. Internal soil rents are capitalized for timber. The results show timber to have a comparative advantage on high fertility sites and suggest that timber might become a competitive land use at the intensive margin of the region's farmland base.

Suggested Citation

  • Hardie, Ian W., 1984. "Comparative Rents For Farmland And Timberland In A Subregion Of The South," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(2), pages 1-9, December.
    • Handle: RePEc:ags:sojoae:29724
    DOI: 10.22004/ag.econ.29724
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    References listed on IDEAS

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    1. Heaps, Terry & Neher, Philip A., 1979. "The economics of forestry when the rate of harvest is constrained," Journal of Environmental Economics and Management, Elsevier, vol. 6(4), pages 297-319, December.
    2. Richard W. Haynes & Darius M. Adams, 1983. "Changing Perceptions of the U.S. Forest Sector: Implications for the RPA Timber Assessment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(5), pages 1002-1009.
    3. K. E. McConnell & J. N. Daberkow & I. W. Hardie, 1983. "Planning Timber Production with Evolving Prices and Costs," Land Economics, University of Wisconsin Press, vol. 59(3), pages 292-299.
    4. Hoffman, George & Gustafson, Cole, 1983. "A New Approach to Estimating Agricultural Costs of Production," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 35(4), pages 1-6, October.
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    Cited by:

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    2. Harou, Patrice A. & Zheng, Chinlong & Zhang, Daowei, 2013. "The Alternative Test in forestry," Forest Policy and Economics, Elsevier, vol. 34(C), pages 41-46.
    3. Hongkun Ma & Hao Zhu & Shuhan Ren & Rudi Liu & Cuixia Qiao, 2023. "The Impact of Government-Led Farmland Construction on Market-Oriented Farmland Transfer—Evidence from Shandong, China," IJERPH, MDPI, vol. 20(4), pages 1-12, February.
    4. Newman, D.H., 2002. "Forestry's golden rule and the development of the optimal forest rotation literature," Journal of Forest Economics, Elsevier, vol. 8(1), pages 5-27.

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    Keywords

    Land Economics/Use;

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