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Abstract

A study of farmland sales in four South Dakota counties indicated productivity and location variables are important in explaining variation in per acre sale price, while financial variables are not. The same explanatory variables are significant in periods of rising (1979-1980) and declining <1981- 1982) prices but parameter estimates vary significantly between the periods. Over SOX of per acre sale price variation was e : · : p 1 ai ned in both periods. These findings ( 1) support traditional explanations of cross-sectional farmland price variation, and (2) suggest that explanatory factors exert varying pressure on farmland sale prices at different times.

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