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Identifying the Extent of the Urban Fringe and Its Impact on Agricultural Land Values

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  • Benoît A. Delbecq
  • Todd H. Kuethe
  • Allison M. Borchers

Abstract

This study presents an empirical model of the impacts of agricultural and urban returns on farmland value. The model allows the marginal impacts of parcel characteristics to vary nonlinearly over space with an endogenous smooth transition between urban fringe and rural areas. The estimation examines 10,317 parcel-level farmland transactions across the state of Illinois over the period January 2001–December 2009. The results suggest that marginal impacts of both agricultural and urban returns differ between urban fringe and rural areas.

Suggested Citation

  • Benoît A. Delbecq & Todd H. Kuethe & Allison M. Borchers, 2014. "Identifying the Extent of the Urban Fringe and Its Impact on Agricultural Land Values," Land Economics, University of Wisconsin Press, vol. 90(4), pages 587-600.
    • Handle: RePEc:uwp:landec:v:90:y:2014:i:4:p:587-600
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    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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