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Agricultural Land Values under Urbanizing Influences

By Yue Jin Shi, Timothy T. Phipps and Dale Colyer


The research reported in this paper combines agricultural and urban-fringe models, utilizes a combination of cross-sectional and time-series data from the Census of Agriculture and other sources, and estimates a single-equation model for West Virginia farmland prices. Urban influences on land prices are captured using a gravity model adapted from marketing research. The results indicate that both farm income and urban influences have been important factors affecting the value of the state's farmland. The gravity model is a promising and parsimonious method for capturing urban influences in a single variable that combines size and distance.

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