Modeling the effect of off-farm income on farmland values: A quantile regression approach

Ashok K. Mishra, Charles B. Moss

Research output: Contribution to journalArticlepeer-review

11 Scopus citations

Abstract

Using the farm household as a unit of analysis and farm-level data, this study examines the impact of off-farm income on farmland values. In contrast to previous studies that assume a homogeneous relationship across the entire distribution, in this study quantile regression is used to estimate the empirical model. Results of this study show the effect of land attributes-captured by regional location and farm program payments; off-farm income on value of farmland can be better explained by estimating quantile regression across farmland value categories. Results indicate that a 1. percent increase in off-farm income could increase per-acre farmland value between 0.15 and 0.21%.

Original languageEnglish (US)
Pages (from-to)361-368
Number of pages8
JournalEconomic Modelling
Volume32
Issue number1
DOIs
StatePublished - May 2013
Externally publishedYes

Keywords

  • Direct payments
  • Farm household
  • Farm program payments
  • Farmland value
  • Gross cash income
  • Indirect payments
  • Off-farm income
  • Ordinary least squares
  • Quantile regression

ASJC Scopus subject areas

  • Economics and Econometrics

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