Determinants of Farmland Value: The Case of DeKalb County, Illinois

Stewart, Patrick A.; Libby, Lawrence W.

doi:10.2307/1349535

Cited by 26 publications

(19 citation statements)

References 26 publications

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“…Figure 11 shows that aggregate farmland use changes occur close to urban planning areas and industrial and science parks. The clustering pattern of farmland use changes in Tainan County is consistent with previous findings, such as their proximity to urban areas (Cheshire 1995;Guiling et al 2009) or large-scale infrastructure facilities (Stewart and Libby 1998).…”

Section: Discussionsupporting

confidence: 90%

“…However, previous studies focused exclusively on the analysis of attribute data, without concern for the location or geographic information. However, location-specific characteristics are in fact crucial to the conversion of farmland to non-farming uses (Sklenicka et al 2013); these characteristics include proximity to an urban area (Cheshire 1995;Guiling et al 2009) or large-scale infrastructure facility (Stewart and Libby 1998). Methods for analyzing farmland use change require particular tools (explained below) to depict and explain how the distribution of geographic entities developed.…”

Section: Introductionmentioning

confidence: 99%

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Exploring spatial patterns of farmland transactions and farmland use changes

Chang

Chen

2015

Environ Monit Assess

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Strong economic incentives stimulate the conversion of farmland to non-farm uses possessing higher economic benefits, and rising land values can result in further conversions in the surrounding areas. However, previous studies focused exclusively on the analysis of attribute data, without concern for location or geographic information. Our study focuses on the application of spatial analysis method by exploring the magnitude and patterns of farmland use changes and farmland transactions in Tainan County in southwestern Taiwan. The results show that farmland use changes and transactions appear to cluster in specific locations-near urban planning areas, industrial parks, and science parks. Clustered farmland use changes indicate both excessive development of some farmland and possible protection of other farmland, while clustered farmland transactions indicate potential pressure for future conversion to non-farming uses. Overall, the spatial analyses indicate (without necessarily implying a cause-and-effect relationship) that the greater the farmland use change, the greater the number of farmland transactions. This approach to exploring the spatial patterns in and the interaction between farmland use change and farmland transactions can be applied to other regions facing increasing competition for farmland conversions and may be a useful tool for monitoring both urban expansion and increased farmland transactions. These occurrences should be closely monitored by governments to avoid excessive loss of farmland.

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Section: Discussionsupporting

confidence: 90%

Section: Introductionmentioning

confidence: 99%

Exploring spatial patterns of farmland transactions and farmland use changes

Chang

Chen

2015

Environ Monit Assess

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“…The impact of conversion pressures from rapidly expanding suburban areas, a non-productive factor, is well documented by Stewart and Libby (1998) and Guiling et al (2009). Boisvert et al (1997) and Goodwin et al (2003) established that the population density of the closest city to the farmland is a good proxy of land conversion pressure, obtaining a positive and significant effect of this variable on farmland value.…”

Section: Introductionmentioning

confidence: 99%

“…The methodology most commonly used to identify the determinants of land prices has been hedonic prices (Snyder et al, 2007;Madison, 2000;Roka and Palmquist, 1997;Stewart and Libby, 1998;Ready et al, 1997;Palmquist and Danielson, 1989;Miranowski and Hammes, 1984). Schönhaut (1999) analyzes the prices of agricultural land in Chile with a hedonic approach for the years 1978-1998 using data from the advertisements of El Mercurio for the period 1978-1983 and from the Revista del Campo for the period 1984-1998, only considering properties larger than 30 hectares to avoid the inclusion of suburban country plots.…”

Section: Introductionmentioning

confidence: 99%

A comparison of farmland value determinants in Chile between 1978-1998 and 1999-2008

et al. 2013

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Research on the determinants that influence the price of farmland has found renewed interest in the past decade because agricultural land values are an important source of information for tracing the distribution of benefits generated by agricultural growth. This study's objective is to identify the determinants of the value of agricultural land in Chile for the periods 1978-1998 and 1999-2008 to analyze the evolution of the factors that determined the price of agricultural land between these two periods. The explanatory power of the estimated hedonic land price model is significantly greater for the period 1978-1998 (R 2 = 67%). The lower explanatory power of the model for the period 1999-2008 (R 2 = 29%) indicates that factors not accounted for in the model have increased its importance during the past decade. Thus, a different set of factors determines farmland value for each time period. Further research is required to identify the determining factors of farmland value during the last decade. Some variables maintained their relative importance during both time periods. Such is the case of the importance of the distance between the farm and Santiago, which ranked second in both periods, and total farm surface, which ranked fifth. All other variables present changes in their relative importance. The price trend increased from the third to the first rank in the last decade. The price of the most important agricultural product increased 5 positions and was ranked third during the period 1999-2008. The distance of the farm to the regional capital increases from its previous position in 1978-1998 to the fourth position during the last decade. Other factors that increased their importance are the interaction between the distance to Santiago with the time trend and the presence of construction. The variables that reduce their relative importance are the farmland aptitude variables.Key words: Agricultural land value, determinants of agricultural land value, hedonic agricultural land value model.

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“…The most frequently mentioned characteristics of farmland real estate affecting conversion to non-agricultural uses are proximity to a settlement (Guiling et al 2009), distance to a metropolitan area (Naydenov 2009;Sklenicka et al 2013), soil quality and parcel size Zeithaml et al 2009), quality of the infrastructure and accessibility (Stewart & Libby 1998), and size of the adjacent settlement or local population (Guiling et al 2009). These factors generally support all of land uses for future non-agricultural purposes whether they are residential construction, recreational purposes, or commercial construction.…”

mentioning

confidence: 99%

Effect of water features proximity on farmland prices in a landlocked country: the consequences for planning

Sekáč¹,

Šálek²,

Wranová³

et al. 2017

Soil & Water Res.

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Sekáč P., Šálek M., Wranová A., Kumble P., Sklenička P. (2017): Effect of water features proximity on farmland prices in a landlocked country: the consequences for planning. Soil & Water Res., 12: 18−28.Conversion of farmland to non-farm uses significantly influences the spatial variability of farmland prices. We tested 12 factors of land prices that experienced real estate brokers indicated to be the most important determinants for the conversion of farmland to non-agricultural use. Five factors can be described as landscape, four as geographic, and three as climatic explanatory variables influencing farmland prices. Our results indicate that the two most powerful factors in explaining the sales price per square metre were proximity to a river and proximity to a lake. In both cases, the price of land diminished significantly with the increasing distance from the edge of water bodies, so the prices in their immediate vicinity are 3.5 to 3.7 times higher than the prices of similar lands more than 5 km from the edge of a water body. The other significant factors were population size of the nearest municipality and percentage representation of forest. The fact that the two most powerful factors indicate the distance to a river, brook, lake or pond shows how important are these freshwater features as determinants of farmland prices in a landlocked country such as the Czech Republic, where this study was performed. The consequences of this finding for water resources planning and management are discussed.

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Determinants of Farmland Value: The Case of DeKalb County, Illinois

Cited by 26 publications

References 26 publications

Exploring spatial patterns of farmland transactions and farmland use changes

Exploring spatial patterns of farmland transactions and farmland use changes

A comparison of farmland value determinants in Chile between 1978-1998 and 1999-2008

Effect of water features proximity on farmland prices in a landlocked country: the consequences for planning

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