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Alberta Farmland Values: The Impact of Agricultural Land Conversion/Fragmentation

Author

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  • Bentley, Angela
  • Jeffrey, Scott
  • Qiu, Feng

Abstract

A hedonic pricing model is estimated for Alberta farmland values using pooled cross-sectional data spanning the years 2000-2011. Explanatory variables are chosen based on relevant theoretical and empirical considerations. In addition to conventional variables such as agricultural returns, distance to an urban centre, change in population density, soil quality, presence of improvements, and irrigation, supplementary variables are included to examine the impacts of farmland conversion (to developed uses) and fragmentation on farmland prices. Results are generally consistent with expectations. For example, higher soil quality is associated with higher farmland values. Furthermore, fragmentation and conversion appear to have some positive influence on farmland values in Alberta. Information concerning the influence of fragmentation and conversion on farmland values and the implications for future farmland conversion and preservation is of value to policymakers in making decisions regarding land use frameworks and other land use related policies.

Suggested Citation

  • Bentley, Angela & Jeffrey, Scott & Qiu, Feng, 2015. "Alberta Farmland Values: The Impact of Agricultural Land Conversion/Fragmentation," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205884, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205884
    DOI: 10.22004/ag.econ.205884
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    Keywords

    Agribusiness; Agricultural and Food Policy; Land Economics/Use;
    All these keywords.

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