Relative proportion of agricultural land values generated by farm program payments, farm returns, and non-farm activity in the mountain region and the U.S are estimated for the period 1939 to 2005. Results suggest the contribution of farm program payments to agricultural land values in the mountain region and the U.S. is quite similar and robust across the four alternative panel estimators for the period, 1939-2005. The contribution of the farm returns to value of land is lower in the mountain region compared to the U.S. The contribution of non-farm activity to the land values is higher for the U.S. compared to the mountain region. The relationship between farm program payments and farm returns are positive in mountain region and negative for U.S.