RT Journal Article
SR Electronic
T1 Following the Market? Hedonic Farmland Valuation Using Sales Prices versus Self-reported Values
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 418
OP 440
DO 10.3368/le.96.3.418
VO 96
IS 3
A1 Bigelow, Daniel P.
A1 Ifft, Jennifer
A1 Kuethe, Todd
YR 2020
UL http://le.uwpress.org/content/96/3/418.abstract
AB Many farmland valuation studies rely on survey estimates to form the dependent variable in a first-stage hedonic model. This study, based in New York State, provides a microscale comparison of transaction prices and producers’ market value estimates from the U.S. Department of Agriculture’s June Area Survey. Although we find similar weighted value distributions, regression results identify differences in marginal effect estimates and illustrate how market thinness plays a role in the comparability of observed transaction prices and self-reported values. The findings have implications for future hedonic studies, including insights into behavioral differences concerning how farmers and market participants perceive the value of farmland. (JEL Q11, Q51)