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Farmland Protection and Agricultural Land Values at the Urban-Rural Fringe: British Columbia's Agricultural Land Reserve

Author

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  • Alison J. Eagle
  • David E. Eagle
  • Tracy E. Stobbe
  • G. Cornelis van Kooten

Abstract

Farmland conservation policies typically use zoning and differentiated taxes to prevent urban development of farmland, but little is known about the effectiveness of these policies. This study adds to current knowledge by examining the impact of British Columbia's Agricultural Land Reserve (ALR), established in 1973, which severely restricts subdivision and nonagricultural uses for more than 4.7 million hectares of farmland. To determine the extent to which the ALR preserves farmland by reducing or removing the development option, a multilevel hedonic pricing model is used to estimate the impact of land use, geographic, and zoning characteristics on farmland value near the capital city of Victoria on Vancouver Island. Using sales data from 1974 through 2008, the model demonstrates a changing ALR impact over time that varies considerably by improved and unimproved land types. In 2008, landowners paid 19% less for the typical improved farmland parcel within the ALR versus that outside it. This suggests that would-be developers expect permanency in the zoning law, and prefer non-ALR zoned land. However, ALR land that is unimproved has a premium of 55%, suggesting that this land is more valuable for agriculture than for development. Farmland located closer to the city or the commuting highway commands a premium if it has a residence on it, with a residence also explaining why smaller agricultural properties sell at higher prices. However, it appears that zoning by itself is insufficient to protect farmland; other policies likely need to be implemented in conjunction with zoning to protect agricultural land.

Suggested Citation

  • Alison J. Eagle & David E. Eagle & Tracy E. Stobbe & G. Cornelis van Kooten, 2015. "Farmland Protection and Agricultural Land Values at the Urban-Rural Fringe: British Columbia's Agricultural Land Reserve," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 282-298.
    • Handle: RePEc:oup:ajagec:v:97:y:2015:i:1:p:282-298.
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    File URL: http://hdl.handle.net/10.1093/ajae/aau098
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    Citations

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    Cited by:

    1. Richard J Vyn & James Rude, 2020. "The Influence of Supply Management on Farmland Values in Ontario," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 815-834, December.
    2. Yiming Yang & Xiuli Wang & Jian Wang & Yiwei Geng & Weiqiang Chen & Qun Wu & Xiaoke Guan, 2022. "Evaluation and Improvement of Cultivated Land Leisure Service Function Based on Multisource Spatial Data," Land, MDPI, vol. 11(2), pages 1-17, February.
    3. Liu, Luo & Liu, Zhenjie & Gong, Jianzhou & Wang, Lu & Hu, Yueming, 2019. "Quantifying the amount, heterogeneity, and pattern of farmland: Implications for China’s requisition-compensation balance of farmland policy," Land Use Policy, Elsevier, vol. 81(C), pages 256-266.
    4. Hongbin Liu & Jie Lyu, 2021. "Drive Mechanisms of Soil Quality Changes in Peri-Urban Areas," Land, MDPI, vol. 10(2), pages 1-21, February.
    5. Jelena Živanović Miljković & Vesna Popović & Aleksandra Gajić, 2022. "Land Take Processes and Challenges for Urban Agriculture: A Spatial Analysis for Novi Sad, Serbia," Land, MDPI, vol. 11(6), pages 1-18, May.
    6. Yagi, Hironori & Garrod, Guy, 2018. "The future of agriculture in the shrinking suburbs: The impact of real estate income and housing costs," Land Use Policy, Elsevier, vol. 76(C), pages 812-822.
    7. Ayambire, Raphael Anammasiya & Amponsah, Owusu & Peprah, Charles & Takyi, Stephen Appiah, 2019. "A review of practices for sustaining urban and peri-urban agriculture: Implications for land use planning in rapidly urbanising Ghanaian cities," Land Use Policy, Elsevier, vol. 84(C), pages 260-277.
    8. Wang, Liye & Zhang, Siyu & Xiong, Qiangqiang & Liu, Yu & Liu, Yanfang & Liu, Yaolin, 2022. "Spatiotemporal dynamics of cropland expansion and its driving factors in the Yangtze River Economic Belt: A nuanced analysis at the county scale," Land Use Policy, Elsevier, vol. 119(C).
    9. 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.
    10. Liejia Huang & Yue Feng & Boqing Zhang & Weiyan Hu, 2021. "Spatio-Temporal Characteristics and Obstacle Factors of Cultivated Land Resources Security," Sustainability, MDPI, vol. 13(15), pages 1-19, July.

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