FARMLAND PRICE BEHAVIOR AND CREDIT ALLOCATION

A model of farmland accumulation analyzes the impact of credit allocation and the level of debt on farmland prices. The model stresses the importance of the real net wealth accumulated by the farming sector on the lending procedures for farmland purchases. It is shown that credit allocated on the basis of wealth not only increases farmland prices but also destabilizes them. The paper presents the model of individual accumulation to derive the farmland price equation whose dynamic properties are analyzed. A study of U.S. farmland data supports the theoretical results.


Issue Date:
1984-12
Publication Type:
Journal Article
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/32131
PURL Identifier:
http://purl.umn.edu/32131
Published in:
Western Journal of Agricultural Economics, 09, 2
Page range:
303-313
Total Pages:
11




 Record created 2017-04-01, last modified 2019-08-26

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