Land economics

Why Are Outside Investors Suddenly Interested in Farmland?

by Jennifer Ifft

Giannini Foundation ARE Update article

There is a growing notion that a large volume of farmland purchases are being made by individuals and institutions... more There is a growing notion that a large volume of farmland purchases are being made by individuals and institutions outside of the traditional agricultural sector. Over the last 15 years, farmland has offered returns higher than the S&P 500, and farmland did not experience the price bust of residential housing. However, farmland price appreciation varies by regions.

The Influence of Urban Areas on Farmland Values

by Jennifer Ifft

Choices "Farmland Values" theme article co-authored with Todd Kuethe & Mitch Morehart

This article examines the role of urban influence on U.S. cropland values. Based on farmer-reported data from... more This article examines the role of urban influence on U.S. cropland values. Based on farmer-reported data from USDA/NASS June Area Survey (JAS), urban pressures exhibited significant influence on U.S. cropland values during the 1999 through 2010, a period of significant volatility in urban real estate markets, as well as increasing farm incomes and record high commodity prices.

Trends in U.S. Farmland Values and Ownership

by Jennifer Ifft

USDA Economic Research Service Economic Information Bulletin

Because farm real estate represents much of the value of U.S. farm sector assets, large swings in farmland values can... more Because farm real estate represents much of the value of U.S. farm sector assets, large swings in farmland values can affect the financial well-being of agricultural producers. This report examines both macroeconomic (interest rates, prices of alternative investments) and parcel-specific (soil quality, government payments, proximity to urban areas) factors that affect farmland values. In the last few years, U.S. farmland values have been supported by strong farm earnings, which have helped the farm sector in many regions to withstand the residential housing downturn. Historically low interest rates are likely a significant contributor to farming’s current ability to support higher land values. About 40 percent of U.S. farmland has been rented over the last 25 years. Non-operators (landowners who do not themselves farm) owned 29 percent of land in farms in 2007, though that proportion has declined since 1992.

Measuring the property-value effects of local land use and preservation referenda

by Martin Heintzelman

This paper examines a Massachusetts
policy that encourages communities to raise money
through referenda for... more This paper examines a Massachusetts
policy that encourages communities to raise money
through referenda for preservation and affordable
housing. I use difference-indifferences, fixed effects,
and quantile regression to compare home prices
before and after such referenda in two towns. I
include covariates representing existing land uses,
zoning, and historic resources to estimate the value
of these amenities. Standard regression techniques
indicate weak effects of the referenda, while the
estimated coefficients on land use and historic
preservation confirm that preservation has a positive
effect on property values. The quantile regression
sheds light on some heterogeneity that goes unnoticed
in standard regression results.

Values in the Wind: A Hedonic Analysis of Wind Power Facilities

by Martin Heintzelman

co-authored with Carrie M. Tuttle

The siting of wind facilities is extremely controversial. This paper
uses data on 11,331 property transactions... more The siting of wind facilities is extremely controversial. This paper
uses data on 11,331 property transactions over 9 years in Northern New York to explore
the effects of new wind facilities on property values. We use a fixed effects framework
to control for omitted variables and endogeneity biases. We find that nearby
wind facilities significantly reduce property values in two of the three counties studied.
These results indicate that existing compensation to local homeowners/communities
may not be sufficient to prevent a loss of property values.

The Value of Land Use Patterns and Preservation Policies

by Martin Heintzelman

In many communities, land-use and open-space preservation have become important concerns.
Using a large dataset... more In many communities, land-use and open-space preservation have become important concerns.
Using a large dataset containing every home sale in the state of Massachusetts over 8
years, this paper simultaneously measures the impact of the mix of land-uses in the immediate
neighborhood of a home on property values and the impact of a locally-implemented program,
the Community Preservation Act (CPA), which provides funds for local open-space and historic
preservation as well as affordable housing. I exploit the panel nature of the dataset to conduct
a difference-in-differences analysis using local as well as house level fixed effects to overcome
omitted variables bias. My results indicate that, on average, passage of the CPA reduces property
values by about 1.5% in Massachusetts towns. However, when I allow the CPA effect to differ by
county, I find some heterogeneity – it increases property values in some communities and reduces
them in others. Variation in local spending priorities appears to have little impact on property
values or the effect of the CPA. Finally, I find that cropland and pasture, as well as low-density
residential development, are the most preferred local land-uses, and that homes are more expensive
as one increases distance to highways and active rail lines.

Property Taxes & Public Education Funding: Inequality in the System

by Joshua Berry

Research conducted by Joshua R. Berry
Project completed within the Department of Urban and Regional Planning, University of Florida (2011)

From its inception, the United States and its citizenry have placed tremendous importance on the education of its... more From its inception, the United States and its citizenry have placed tremendous importance on the education of its youth. While education occurs both publicly and privately, the public school systems have been a longstanding strength of this country. In recent years however, there has been great debate over many issues involved in the processes of funding public education, including but not limited to: Who is responsible for funding? How much should local, state, and federal sources contribute? How should funds be distributed? These questions and more have not been successfully answered in the United States, because many problems with education funding persist despite various efforts to address these issues.
One of the most pertinent of these problems is the inequality in education caused by taxation of property values. As this essay will show, many organizations and researchers have consistently shown the unequal effects that funding from local property taxes has upon the education levels offered by the corresponding school districts.  This essay will attempt to answer the question: Is there a more equitable alternative to funding public schools than is currently in place through local property taxation? The following discussion will demonstrate the causal effect that this source of funding often has upon the level of education received by students, and will seek to prove the hypothesis that a more equitable funding method exists to satisfy the large financial contribution that local property taxes typically provide the public school systems.