IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v64y1982i4p710-719..html
   My bibliography  Save this article

Farmland Accumulation and Prices

Author

Listed:
  • Haim Shalit
  • Andrew Schmitz

Abstract

A model of farmland accumulation is developed to study factors influencing U.S. farmland values. This model stresses the manner in which credit is allocated for land purchases. To secure necessary loans for additional land to expand farm size, the farmer provides as collateral his net accumulated wealth. Thus, land acquisitions are made to increase profits and to provide leverage for further land expansion. Besides income and consumption, the level of accumulated debt is one of the main determinants of farmland prices. Derived demand for farmland is developed, and the pricing equation for farmland is estimated as part of a structural equation model.

Suggested Citation

  • Haim Shalit & Andrew Schmitz, 1982. "Farmland Accumulation and Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 710-719.
    • Handle: RePEc:oup:ajagec:v:64:y:1982:i:4:p:710-719.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1240580
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pavel Ciaian & Edoardo Baldoni & d'Artis Kancs & Dušan Drabik, 2021. "The Capitalization of Agricultural Subsidies into Land Prices," Annual Review of Resource Economics, Annual Reviews, vol. 13(1), pages 17-38, October.
    2. Mishra, Ashok K. & Moss, Charles B. & Erickson, Kenneth W., 2004. "Effect Of Debt Solvency On Farmland Values: A Panel Cointegration Approach," 2004 Annual meeting, August 1-4, Denver, CO 20261, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Janssen, Larry & Lehmkuhl, David, 1991. "Empirical Analysis of Seller, Mortgage and Equity Financing Impacts on Farmland Sale Price, 1978-1987," WAEA/ WFEA Conference Archive (1929-1995) 321475, Western Agricultural Economics Association.
    4. Fiske, John Robery, 1983. "The impact of financial constraints on the local price of farm land," ISU General Staff Papers 198301010800008710, Iowa State University, Department of Economics.
    5. Euan Phimister, 1995. "Farm Household Production In The Presence Of Restrictions On Debt: Theory And Policy Implications," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(3), pages 371-380, September.
    6. Richard G. Newell & Kerry L. Papps & James N. Sanchirico, 2007. "Asset Pricing in Created Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 259-272.
    7. Sanchirico, James & Newell, Richard & Papps, Kerry, 2005. "Asset Pricing in Created Markets for Fishing Quotas," RFF Working Paper Series dp-05-46, Resources for the Future.
    8. Stam, Jerome M., 1995. "Credit as a Factor Influencing Farmland Values," Staff Reports 278779, United States Department of Agriculture, Economic Research Service.
    9. François Facchini, 1997. "Politique agricole en France et prix de la terre," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00490336, HAL.
    10. Sant’Anna, Ana Claudia & Katchova, Ani L., 2019. "The Impact of Bank Concentration on Land Values," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2019.
    11. Joyce Hall Krause & B. Wade Brorsen, 1995. "The Effect of Risk on the Rental Value of Agricultural Land," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(1), pages 71-76.
    12. Love, H. Alan & Karp, Larry, 1988. "The Effect of Anticipated Farm Failure on the.Agricultural Land Market," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270186, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Hennings, Enrique & Sherrick, Bruce J. & Barry, Peter J., 2005. "Portfolio Diversification Using Farmland Investments," 2005 Annual meeting, July 24-27, Providence, RI 19273, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Shalit, Haim & Schmitz, Andrew, 1984. "Farmland Price Behavior And Credit Allocation," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(2), pages 1-11, December.
    15. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772, Elsevier.
    16. Breimyer, Harold F. & Tweeten, Luther & Chattin, Barbara & Lee, John E. & Batten, Dallas S. & Belongia, Michael T. & Raup, Philip M. & Kelley, Paul L. & Womack, Abner W. & Cook, Michael L. & Hosemann,, 1983. "United States Farm Policy in a World Dimension," Miscellaneous Reports 257831, University of Missouri Columbia, Department of Agricultural Economics.
    17. Johnson, James William, 1985. "Land prices: changes and variability: the effect on Iowa grain farms," ISU General Staff Papers 1985010108000017533, Iowa State University, Department of Economics.
    18. Rosés, Joan R., 2009. "Land markets and agrarian backwardness (Spain, 1900-1936)," IFCS - Working Papers in Economic History.WH wp09-02, Universidad Carlos III de Madrid. Instituto Figuerola.
    19. Spurlock, Stanley R., 1985. "Discussion: Issues In Agricultural Land Markets: An Empirical Perspective," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(1), pages 1-3, July.
    20. B. James Deaton & Chad Lawley, 2022. "A survey of literature examining farmland prices: A Canadian focus," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(2), pages 95-121, June.
    21. Laure Latruffe & Chantal Le Mouël, 2009. "Capitalization Of Government Support In Agricultural Land Prices: What Do We Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 23(4), pages 659-691, September.
    22. Bahrs, Enno, 2003. "Bodenkauf als Reinvestitionsfalle – eine deduktive Zahlungsbereitschaftsanalyse," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 52(05), pages 1-13.
    23. Lowenberg-DeBoer, James M., 1985. "The impact of farmland price changes on farm size, financial structure enterprise choice," ISU General Staff Papers 198501010800009722, Iowa State University, Department of Economics.
    24. Moore, Kevin Clare, 1985. "Predictive econometric modeling of the United States farmland market: an empirical test of the rational expectations hypothesis," ISU General Staff Papers 198501010800008872, Iowa State University, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    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:oup:ajagec:v:64:y:1982:i:4:p:710-719.. 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.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.