Determining Land Values Using Ordinary Least Squares Regression

Agricultural land values have increased by an average of 21 percent each year since 2010 until recently when commodity prices dropped substantially. The accompanying decrease in profitability raises concerns that current land prices are not sustainable. This study presents a regression analysis of land prices in Kansas using data from 2012 through June 2014. Regression allows valuation of individual characteristics of land parcels as well as time adjustments. Prices projected by the model trended upward through 2013, but decreased between the last quarter of 2013 and the first quarter of 2014, suggesting that prices for land may have peaked in 2013.

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Journal Article
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Journal of the ASFMRA (American Society of Farm Managers and Rural Appraisers), 2015
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 Record created 2017-04-01, last modified 2018-01-23

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