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The impact of no‐till on agricultural land values in the United States Midwest

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  • Le Chen
  • Roderick M. Rejesus
  • Serkan Aglasan
  • Stephen Hagen
  • William Salas

Abstract

This study investigates the impact of no‐till practice on agricultural land values in the United States (US) Midwest. Two county‐level panel data sets—the agricultural census farmland value data and the Iowa Farmland Values Survey data—are separately merged with a novel satellite‐based data set on no‐till adoption rates to achieve the study objective. Based on linear fixed effect econometric models, recently developed “external‐instrument‐free” estimation procedures, and a number of robustness checks, we find that increasing no‐till adoption rates has a statistically significant positive effect on agricultural land values at the county level. Results from the empirical analysis support the notion that economic and environmental benefits from adopting soil conservation practices, such as no‐till, are likely capitalized into higher farmland values.

Suggested Citation

  • Le Chen & Roderick M. Rejesus & Serkan Aglasan & Stephen Hagen & William Salas, 2023. "The impact of no‐till on agricultural land values in the United States Midwest," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(3), pages 760-783, May.
    • Handle: RePEc:wly:ajagec:v:105:y:2023:i:3:p:760-783
    DOI: 10.1111/ajae.12338
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    2. Benami, Elinor & Bell, Anne & Messer, Kent D. & Zhang, Wei & Cecil, Michael, 2024. "Seeding Change to Manage Climate Change: Growing Insights from Four USDA Programs to Support Climate-Smart Agriculture," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344333, International Association of Agricultural Economists (IAAE).
    3. Dong, Fengxia & Mitchell, Paul D., 2023. "Economic and risk analysis of sustainable practice adoption among U.S. corn growers," Agricultural Systems, Elsevier, vol. 211(C).
    4. Eduard Alexandru DUMITRU & Luiza-Florentina ZAPUCIOIU & Maria Cristina STERIE, 2023. "Land Improvements in Agriculture: A bibliometric Analysis Unveiling Trends and Future Research Perspectives," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(5), pages 859-867, December.

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