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The Effects of Farmland, Farmland Preservation, and Other Neighborhood Amenities on Housing Values and Residential Growth

Using data from a conjoint instrument, we estimate compensating variation for the presence of neighboring land that is dedicated to agricultural use (versus developed uses), the preservation of surrounding farmland as permanent cropland, and key neighborhood characteristics such as neighborhood parks, commute times, school quality, and safety. We find that rural-urban fringe areas that are located within commuting distance of urban areas and that have an abundance of farmland could attract residential development. Typical preservation efforts, featuring small parcels of preserved farmland, would induce further residential growth only for areas with short commutes and small amounts of remaining farmland. (JEL R14, Q15)