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Government Policy and Farmland Markets: The Maintenance of Farmer Wealth



Government Policy and Farmland Markets: The Maintenance of Farmer Wealth

Charles Moss, Andrew Schmitz

ISBN: 978-0-813-82329-4 October 2003 Wiley-Blackwell 421 Pages


Of immeasurable value to lenders, agricultural economists, and a host of agribusinesses this unique volume brings together leading farmland authorities in the United States and Canada to examine the economic determinants of land value and the consequences of change in land values.

As the most basic factor of production in the agricultural enterprise, farmland dominates the agricultural balance sheet, accounting for an average of 70% of all agricultural assets. The authors of this timely book provide expert analysis and review of this subject.




Section I: Historical Perspectives on Farmland Values.

1 Farmland Markets in the Development of U.S. Agriculture (Willard W. Cochrane).

2 Disaggregating Farmland Markets (Philip M. Raup).

3 Farmland Markets: Historical Perspectives and Contemporary Issues (Bruce J. Sherrick and Peter J. Barry).

Section II: Government Policies and Farmland Values.

4 The Economics and Politics of Farmland Values (Andrew Schmitz and Richard E. Just).

5 U.S. Commodity Policies and Land Values (Bruce Gardner).

6 Explaining Regional Differences in the Capitalization of Policy Benefits into Agricultural Land Values (Barry K. Goodwin, Ashok K. Mishra, and FranFois N. Ortalo-Magne)

7 Do Direct Payments Have Inter-Temporal Effects on U.S. Agriculture? (Terry Roe, Agapi Somwaru, and Xinshen Diao).

8 Economies of Farm Size, Government Payments, and Land Costs (Luther Tweeten and Jeffrey Hopkins).

Section III: Capital Markets and Farmland Values.

9 Capital Markets, Land Values, and Boom-Bust Cycles (Allen M. Featherstone and Charles B. Moss).

10 Hysteresis and the Value of Farmland: A Real-Options Approach to Farmland Valuation (Calum Turvey).

11 The Certainty Equivalence of Farmland Values: 1910 to 2000 (Charles B. Moss, J.S. Shonkwiler, and Andrew Schmitz).

12 Cash Rents, Imputed Returns, and the Valuation of Farmland Revisited (Kenneth Erichon, Ashok K. Mishra. and Charles B. Moss).

Section IV: Transaction Costs and Farmland Values.

13 On the Dynamics of Land Markets under Transaction Costs (Jean-Paul Chavas).

14 Spectral Evidence on the Investment Horizon and Transaction Costs for Present-Value Models of Iowa Farmland Prices (Douglas J. Miller).

15 Using Threshold Autoregressions to Model Farmland Prices under Transaction Costs and Variable Discount Rates (Sergio H. Lence).

Section V: Urbanization, Environmental Quality, and Farmland Values.

16 Local Land Markets and Agricultural Preservation Programs (Lori Lynch and Sabrina J. Lovell).

17 Efficiency, Equity, and Farmland Protection: An Economic Perspective (Lawrence W. Libby).

18 Urban Influence: Effects on U.S. Farmland Markets and Value (Charles Barnard, Keith Wiebe, and Vince Breneman).

19 Rural Amenities and Farmland Values (Lawrence W. Libby and Elena G. Irwin).

Section VI: Regional and International Dimensions.

20 Micro-Markets for Farmland: The Case of Florida and California (John E. Reynolds and Warren Johnston).

21 Effects of Government Restrictions on Land Ownership: The Saskatchewan Case (Jared Carlberg and Hartley Furtan).


  • Gives an historical overview of the structure and performance of farmland markets in the United States
  • Links farmland values and agricultural policy in the United States
  • Discusses the capital market dimension of farmland values and the mechanics of farmland markets, especially the cost of buying and selling farmland
  • Looks at environmental concerns, including the potential impact of urban encroachment and the role of regulations against foreign ownership of farmland on farmland values in Canada.