Flooding and the Value of Agricultural Land

Abstract

This article examines the effect of flooding on agricultural land prices in the Fargo-Moorhead area in two ways: (1) hydraulic modeling data and sales data are used to estimate the effects of flooding and flood severity; and (2) the data are combined with 100-year floodplain information to examine how effects vary across flood-risk categories. Results indicate inundation negatively affects all property; however, effects differ based on floodplain status. Property outside floodplains is affected by coverage, while property within floodplains is affected by depth. All effects are temporary, as they disappear within two years after a flood event.