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Interregional Competitive Impact of Urban Influenced Farmland Prices

Published online by Cambridge University Press:  10 May 2017

John H. Foster
John H. Foster*
Affiliation:
Department of Agricultural and Resource Economics, University of Massachusetts/Amherst
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Abstract

The paper's hypothesis is that the farmers using land with urban influenced prices are at a competitive disadvantage because their land input cost exceeds it calitialized earning power while land prices for other farmers are based on earning ability. This hypothesis was investigated by comparing rates of return to land in Massachusetts and two non-urban dairy regions in Wisconsin. Both areas have low rates of return compared to contemporary market interest rates with Massachusetts rates somewhat below those in Wisconsin. When additional factors are considered, the hypothesis is weakly supported, at best.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 14 , Issue 2 , October 1985 , pp. 122 - 127
Copyright
Copyright © 1985 Northeastern Agricultural and Resource Economics Association 

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Footnotes

Comments by Thomas Stevens and Daniel Dudek on an earlier draft are gratefully acknowledged.

References

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