Income Earning Potential versus Consumptive Amenities in Determining Ranchland Values
The relative importance of income earning potential versus consumptive values in setting ranchland prices is examined using a truncated hedonic model. The market value of New Mexico ranches is related to annual income earning potential and other ranch characteristics including ranch size, location,...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Western Agricultural Economics Association
2005-12-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/30986 |
| _version_ | 1819011375689629696 |
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| author | L. Allen Torell Neil R. Rimbey Octavio A. Ramirez Daniel W. McCollum |
| author_facet | L. Allen Torell Neil R. Rimbey Octavio A. Ramirez Daniel W. McCollum |
| author_sort | L. Allen Torell |
| collection | DOAJ |
| description | The relative importance of income earning potential versus consumptive values in setting ranchland prices is examined using a truncated hedonic model. The market value of New Mexico ranches is related to annual income earning potential and other ranch characteristics including ranch size, location, elevation, terrain, and the amount of deeded, public, and state trust land on the ranch. We found ranch income to be a statistically important determinant of land value, but yet a relatively small percentage of ranch value was explained by income earnings. Ranch location, scenic view, and the desirable lifestyle influenced ranch value more than ranch income. |
| first_indexed | 2024-12-21T01:27:10Z |
| format | Article |
| id | doaj.art-6ea845b412d741aaa428f8c13bbe063b |
| institution | Directory Open Access Journal |
| issn | 1068-5502 2327-8285 |
| language | English |
| last_indexed | 2024-12-21T01:27:10Z |
| publishDate | 2005-12-01 |
| publisher | Western Agricultural Economics Association |
| record_format | Article |
| series | Journal of Agricultural and Resource Economics |
| spelling | doaj.art-6ea845b412d741aaa428f8c13bbe063b2022-12-21T19:20:27ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852005-12-0130353756010.22004/ag.econ.3098630986Income Earning Potential versus Consumptive Amenities in Determining Ranchland ValuesL. Allen TorellNeil R. RimbeyOctavio A. RamirezDaniel W. McCollumThe relative importance of income earning potential versus consumptive values in setting ranchland prices is examined using a truncated hedonic model. The market value of New Mexico ranches is related to annual income earning potential and other ranch characteristics including ranch size, location, elevation, terrain, and the amount of deeded, public, and state trust land on the ranch. We found ranch income to be a statistically important determinant of land value, but yet a relatively small percentage of ranch value was explained by income earnings. Ranch location, scenic view, and the desirable lifestyle influenced ranch value more than ranch income.https://ageconsearch.umn.edu/record/30986consumptive valuegrazing feesgrazing permit valuehedonic modelland valueslifestyle agriculturepublic land grazingvoluntary grazing permit buyout |
| spellingShingle | L. Allen Torell Neil R. Rimbey Octavio A. Ramirez Daniel W. McCollum Income Earning Potential versus Consumptive Amenities in Determining Ranchland Values Journal of Agricultural and Resource Economics consumptive value grazing fees grazing permit value hedonic model land values lifestyle agriculture public land grazing voluntary grazing permit buyout |
| title | Income Earning Potential versus Consumptive Amenities in Determining Ranchland Values |
| title_full | Income Earning Potential versus Consumptive Amenities in Determining Ranchland Values |
| title_fullStr | Income Earning Potential versus Consumptive Amenities in Determining Ranchland Values |
| title_full_unstemmed | Income Earning Potential versus Consumptive Amenities in Determining Ranchland Values |
| title_short | Income Earning Potential versus Consumptive Amenities in Determining Ranchland Values |
| title_sort | income earning potential versus consumptive amenities in determining ranchland values |
| topic | consumptive value grazing fees grazing permit value hedonic model land values lifestyle agriculture public land grazing voluntary grazing permit buyout |
| url | https://ageconsearch.umn.edu/record/30986 |
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