Equilibrium of Land Values from Agricultural and General Economic Factors for Cropland and Pasture Capitalization in Georgia

Abstract

Nonagricultural factors impact land values to cause a divergence of discounted cash rents for agricultural land and land values in Georgia. General economic factors are represented by per capita income in nonmetro areas. Cash rents for cropland and pasture have positive impacts on land values. Nonagricultural factors are stronger influences on land values than are cash rents. Greater effective demand exists for pasture than for cropland because pasture is subject to relatively more pricing pressure in northern counties with higher incomes and population. Increased land values have led to increased net wealth for Georgia agricultural producers.capitalization, cash rent, cointegration, equilibrium, error correction mechanism, land values, Land Economics/Use,