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Abstract

Previous studies have attempted to explain variations in farmland values, but few consider the effect of confined animal feeding facilities (CAFOs) on the value of agricultural land within a certain proximity. Using parcel-level transaction data and fixed-effect models with different specifications on the distance to CAFOs, this study finds a positive relationship between agricultural land prices and CAFOs located within various distances of the parcel sale. With a distance-band specification, the positive effect of CAFOs is more prominent for the 0- to 25-kilometer distance. We also find that the price rises as the nearest CAFO is located closer.

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