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The Influence of Market Returns and Government Payments on Canadian Farmland Values AgEcon
Vyn, Richard J.; Haq, Zahoor Ul; Weerahewa, Jeevika; Meilke, Karl D..
This study estimates the impact of changes in market returns and government payments on farmland values across Canada using data from 1959 to 2009. A recursive simultaneous equation model is estimated to account for the counter-cyclical relationship between market returns and government payments. The results indicate that farmland values are more responsive to changes in market returns than in government payments, but both are important drivers of land values. The elasticity of land values with respect to government payments is lower than has been observed in the United States. In addition, the partial decoupling of government payments has not reduced their impact on farmland values.
Tipo: Working Paper Palavras-chave: Farmland Values; Government Payments; Market Returns JEL Classifications:; Agricultural and Food Policy; Demand and Price Analysis; Land Economics/Use.
Ano: 2012 URL: http://purl.umn.edu/122738
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The Determinants of Farmland Values in Canada AgEcon
Weerahewa, Jeevika; Meilke, Karl D.; Vyn, Richard J.; Haq, Zahoor Ul.
This study has examined the determinants of farmland values in Canada. The empirical results for the period 1959-2004 show that farmland values seem to be disconnected from adjusted earnings per acre regardless of model specification. Differences in model specification can change the interpretation of the importance of government payments in influencing farm land values. If a time trend is included in the land value function government payments appear to have no effect on land values; when the time trend is removed they have a statistically significant positive effect on land values. With respect to the other explanatory variables, the higher the population density, the higher farmland values, indicating that urbanization increases farmland values....
Tipo: Working or Discussion Paper Palavras-chave: Land values; Canada; Agricultural and Food Policy; Demand and Price Analysis.
Ano: 2008 URL: http://purl.umn.edu/43461
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