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Land Values, Market Forces, and Declining Dairy Herd Size: Evidence from an Urban-Influenced Region

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  • Adelaja, Adesoji O.
  • Miller, Tracy
  • Taslim, Mohammad

Abstract

The role of land values in the dairy industry of an urban-influenced region is investigated by estimating a dairy herd equation based on pooled cross-section and time-series data from counties in New Jersey, Pennsylvania, and New York. The use of cross-terms between hypothesized causal variables and a dummy variable capturing the effect of location allowed the estimation of the differences across states in the effects of milk, feed, and land prices. Results confirm the important role of rising land values in the decline of the dairy industry in the tri-state area, and suggest greater vulnerability of dairy enterprises in urban-influenced areas to rising adverse economic forces. The adverse effects of declining milk prices and higher land values are greatest in New Jersey. The results support the notion that programs such as price support, farmland preservation, farmland assessment, and right-to-farm may have to be maintained in order to retain dairy farms at the urban fringe, where land values are rising rapidly.

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  • Adelaja, Adesoji O. & Miller, Tracy & Taslim, Mohammad, 1998. "Land Values, Market Forces, and Declining Dairy Herd Size: Evidence from an Urban-Influenced Region," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(1), pages 63-71, April.
    • Handle: RePEc:cup:agrerw:v:27:y:1998:i:01:p:63-71_00
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    2. Adelaja, Adesoji O. & Gottlieb, Paul D., 2009. "The Political Economy of Downzoning," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), pages 1-19, October.
    3. Fernandez-Cornejo, Jorge & Nehring, Richard F. & Erickson, Kenneth W., 2007. "Off-Farm Work and Economic Performance: Comparing Crop and Livestock Farms," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9904, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Nehring, Richard & Mishra, Ashok K. & Fernandez-Cornejo, Jorge & Hallahan, Charlie & Erickson, Kenneth & Harris, Michael, 2013. "Off-Farm Work and Economic Performance on Corn Farms," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151422, Agricultural and Applied Economics Association.
    5. Peterson, Hikaru Hanawa, 2002. "Geographic Changes In U.S. Dairy Production," 2002 Annual meeting, July 28-31, Long Beach, CA 19792, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Govindasamy, Ramu & Zurbriggen, Marta & Italia, John & Adelaja, Adesoji O. & Nitzsche, Peter & VanVranken, Richard, 1998. "Farmers Markets: Consumer Trends, Preferences, and Characteristics," P Series 36722, Rutgers University, Department of Agricultural, Food and Resource Economics.
    7. Larson, Janelle M. & Findeis, Jill L. & Smith, Stephen M., 2001. "Agricultural Adaptation To Urbanization In Southeastern Pennsylvania," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 30(1), pages 1-12, April.
    8. Lynch, Lori & Duke, Joshua M., 2007. "Economic Benefits of Farmland Preservation: Evidence from the United States," Working Papers 7342, University of Maryland, Department of Agricultural and Resource Economics.
    9. Mosnier, Claire & Wieck, Christine, 2010. "Determinants of spatial dynamics of dairy production: a review," Discussion Papers 162896, University of Bonn, Institute for Food and Resource Economics.
    10. Ranjan, Ram & Tapsuwan, Sorada, 2008. "Exit Timing Decisions under Land Speculation and Resource Scarcity in Agriculture," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 5998, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Nehring, Richard F. & Fernandez-Cornejo, Jorge, 2005. "The Impacts of Off-Farm Income on Farm Efficiency, Scale, and Profitability for Corn Farms," 2005 Annual meeting, July 24-27, Providence, RI 19566, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Larson, Janelle M. & Findeis, Jill L. & Smith, Stephen M., 2000. "Locational Effects Of Urbanization On Agriculture In Southeastern Pennsylvania," 2000 Annual meeting, July 30-August 2, Tampa, FL 21885, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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