Date of Graduation
8-2011
Document Type
Thesis
Degree Name
Master of Science in Agricultural Economics (MS)
Degree Level
Graduate
Department
Agricultural Economics and Agribusiness
Advisor/Mentor
Ahrendsen, Bruce L.
Committee Member
Goodwin, Harold L. Jr.
Second Committee Member
Bandlerova, Anna
Keywords
Social sciences; Agriculture production; Interest rate; Land value
Abstract
This thesis examines agricultural factors which may have impact on agricultural land values. Based on theory, three primary factors are considered to have an impact on land value: agricultural productivity, agricultural profitability and interest rate. The study is of two countries: the US, where data are from 16 states and Slovakia with 6 states. The ten-year period from 2000 until 2009 is used in the analysis. A capitalization model is used to estimate the relationship between agricultural productivity, profitability and interest rate and land value. Three types of agricultural land are used: cropland and its value in relationship with crops, grassland and its value in relationship with animals and agricultural land and its value in relationship with animals and crops. The estimated results indicate profitability, when proxied by revenue and expenses, and interest rate as significant variables in all US models. Profitability proxied by profit is an insignificant variable. Productivity is significant only in the US crop models. Results from the Slovak models indicate the interest rate as the only significant variable. Unfortunately, the collection of land value data in Slovakia is not very functional, which can be seen in huge differences in values between years and very high values in some states, such that the validity of the data is questionable.
Citation
Majerhoferova, M. (2011). Impact of Agricultural Profitability, Productivity and Interest Rate on Farmland Value for Selected U.S. and Slovak States. Graduate Theses and Dissertations Retrieved from https://scholarworks.uark.edu/etd/123