Hedonic Valuation of Farmland Using Sale Prices versus Appraised Values

Ma, Shan; Swinton, Scott M.

doi:10.3368/le.88.1.1

Cited by 60 publications

(42 citation statements)

References 26 publications

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“…The authors also found that the timely Federal Reserve data are a leading indicator of the price changes suggested by the USDA. Ma and Swinton (2012) compare micro-level models of the determinants farmland values based on assessment and transaction data. The authors found that assessment values poorly reflect dynamically evolving determinants of land value, particularly natural amenities.…”

Section: Introductionmentioning

confidence: 99%

The information content of farmland value surveys

Kuethe

Ifft

2013

Agricultural Finance Review

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Purpose -Farmland plays a critical role in the financial health of the agricultural sector. As a result, a number of institutions closely monitor farm real estate markets and publicly report estimated farmland values. This study aims to compare the information content of reported farmland values from three institutions. Design/methodology/approach -A state space model is formulated to link observed price estimates to the unobservable value of farmland. The model considers reported values over the period 1965-2010 for Iowa from three surveys: Iowa State Extension Service, the Federal Reserve, and the USDA. Findings -The values reported by Iowa State receive the greatest weight in estimating the unobservable market value, yet the appreciation rates implied by the USDA estimates most closely track those of the unobservable value. Originality/value -This study is the first to estimate the unobservable value of farm real estate based on observed estimates. The empirical procedure offers a number of unique advantages. It combines information from data reported at both annual and quarterly intervals and addresses potential problems related to cointegration, nonstationarity, and nonlinearity.

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Section: Introductionmentioning

confidence: 99%

The information content of farmland value surveys

Kuethe

Ifft

2013

Agricultural Finance Review

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“…In line with the literature on hedonic analysis of farmland values (Palmquist and Danielson, 1989 ;Faux and Perry, 1999;Nivens et al, 2002;Miranowski and Hammes, 1984;Ma and Swinton, 2012;Maddison, 2000), we test a Box-Cox transformation of the dependent variable such that:…”

Section: Econometric Model and Analysismentioning

confidence: 98%

“…Ay et al, 2012;Chicoine, 1981;Donoso and Vicente, 2001;Gardner and Barrows, 1985;Maddison, 2009;Miranowski and Hammes, 1984;Palmquist and Danielson, 1989;Troncoso et al, 2010). In order to determine the best functional form, the Box-Cox estimation is used in some studies (Ma and Swinton, 2012;Maddison, 2000;Miranowski and Hammes, 1984;Nivens et al, 2002;Palmquist and Danielson, 1989).…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of agricultural land values in Argentina

Choumert

Phélinas

2015

Ecological Economics

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Avertissement :Les commentaires et analyses développés n'engagent que leurs auteurs qui restent seuls responsables des erreurs et insuffisances. AbstractIn the context of the rapid development of the cultivation of genetically modified soybeans in Argentina, we conduct a hedonic analysis of agricultural land values. The main objective is to evaluate the impact of land tenure systems and agricultural practices on these values. Data on 338 parcels, located in the Pampas region, are analyzed. The tenure appears to be a particularly important variable. We find that plots rented either by physical persons or by companies are negatively valued in relation to plots owned. Results also highlight the importance, though not to a large degree, of a diversified cropping pattern compared to soybean monoculture. Soil quality, location of the plots, distance to markets, as well as to the nearest city, were also found to affect land values.

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“…Goodman and Thibodeau, 2003;Sirmans et al, 2005;Páez et al, 2008;Cervelló and Segura, 2011) and land valuations (e.g. Ma and Swinton, 2012;Samarasinghe and Greenhalgh, 2013;Awasthi, 2014;Lavee, 2015), as improvements of the classical synthetic method, but the weakness of these techniques is well-known when the information is not enough. Nevertheless, the valuation method based on the two cumulative distribution functions (VMTDF) has been widely used to approach the market value of an asset from a characteristic or quality index because of their easy implementation and its important advantages with respect to the above comparative techniques, since the VMTDF works well with very little information (Herrerías and Herrerías, 2010; and the references therein).…”

Section: Introductionmentioning

confidence: 97%