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A Simple Framework For Determining The Fundamental Agricultural-Use Value Of Michigan Farmland

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  • Hanson, Steven D.

Abstract

There is considerable interest in the determination of farmland values. Although alternative models exist, present value models have played a central role in recent studies of agricultural land markets. Alston (1986) uses a present value model to examine the effects of inflation and real growth in net rental income on farmland prices (see also Melichar, 1979). Present value models also underlie analysis of the dynamic behavior of farmland prices by Burt (1986); investigation of causality relations between farmland rents and prices by Phipps (1984); and analysis of the relationship between agricultural and nonagricultural land markets by Robison et al. (1985).

Suggested Citation

  • Hanson, Steven D., 1999. "A Simple Framework For Determining The Fundamental Agricultural-Use Value Of Michigan Farmland," Staff Paper Series 11641, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midasp:11641
    DOI: 10.22004/ag.econ.11641
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    References listed on IDEAS

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    1. Stephen A. Ross, 2013. "The Arbitrage Theory of Capital Asset Pricing," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 1, pages 11-30, World Scientific Publishing Co. Pte. Ltd..
    2. Bruce Bjornson & Robert Innes, 1992. "Another Look at Returns to Agricultural and Nonagricultural Assets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 109-119.
    3. Bruce Bjornson, 1994. "Asset Pricing Theory and the Predictable Variation in Agricultural Asset Returns," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 454-464.
    4. Barry Falk, 1991. "Formally Testing the Present Value Model of Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 1-10.
    5. Tim T. Phipps, 1984. "Land Prices and Farm-Based Returns," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(4), pages 422-429.
    6. Peter J. Barry, 1980. "Capital Asset Pricing and Farm Real Estate," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 549-553.
    7. Emanuel Melichar, 1979. "Capital Gains versus Current Income in the Farming Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 1085-1092.
    8. Allen M. Featherstone & Timothy G. Baker, 1987. "An Examination of Farm Sector Real Asset Dynamics: 1910–85," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(3), pages 532-546.
    9. Falk, Barry L., 1991. "Formally Testing the Present Value Model of Farmland Prices," Staff General Research Papers Archive 11093, Iowa State University, Department of Economics.
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    Cited by:

    1. Nyambane, Gerald G. & Black, J. Roy, 2004. "The Real Options Puzzle For Michigan Tart Cherry Producers," 2004 Annual meeting, August 1-4, Denver, CO 20011, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Sugiyanto, Catur & Nugroho, Dwi, 2011. "Konversi Lahan dan Pilihan Petani," MPRA Paper 28753, University Library of Munich, Germany.

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