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Credit as a Factor Influencing Farmland Values

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  • Stam, Jerome M.

Abstract

The latest farmland boom-bust cycle of the 1970's and 1980's caused agricultural economists to search for an adequate explanation. Some viewed the excessive use of mortgage credit by the farm sector as a major contributor to the boom in farmland prices above what the farm sector's earnings picture would support. A look at the literature on factors determining farmland values, speculative farmland price bubbles, and the role of farm mortgage credit yields a remarkable lack of consensus. Some agricultural economists attributed the 1970's farmland price boom to excessive use of mortgage credit by farmers. However, there exists no general agreement among them as to one primary cause.

Suggested Citation

  • Stam, Jerome M., 1995. "Credit as a Factor Influencing Farmland Values," Staff Reports 278779, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278779
    DOI: 10.22004/ag.econ.278779
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    References listed on IDEAS

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    Cited by:

    1. Flanders, Archie & White, Fred C. & Escalante, Cesar L., 2004. "Comparing Land Values And Capitalization Of Cash Rents For Cropland And Pasture In Georgia," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34614, Southern Agricultural Economics Association.
    2. Luciano Gutierrez, 2001. "Borrowing constraints and the agricultural investment decision process," Agribusiness, John Wiley & Sons, Ltd., vol. 18(1), pages 101-114.
    3. Patrick de Fontnouvelle & Sergio H. Lence, 2002. "Transaction Costs and the Present Value “Puzzle” of Farmland Prices," Southern Economic Journal, John Wiley & Sons, vol. 68(3), pages 549-565, January.
    4. Stephen Devadoss & Viswanadham Manchu, 2007. "A comprehensive analysis of farmland value determination: a county-level analysis," Applied Economics, Taylor & Francis Journals, vol. 39(18), pages 2323-2330.

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