Modeling Farmland Conversion with New GIS Data

Similar documents
Hedonic Pricing Model Open Space and Residential Property Values

Claudia Stuart, Williamson Act Program Manager and Nick Hernandez, Planning Intern

Condominium Conversions in. Determinants

Download Presentation

The hedonic house price index for Poland modelling on NBP BaRN data. Narodowy Bank Polski International Workshop, Zalesie Górne, November 2013

5. PROPERTY VALUES. In this section, we focus on the economic impact that AMDimpaired

Economic Organization and the Lease- Ownership Decision in Water

AGENDA AGRICULTURAL LAND CONSERVATION COMMITTEE. April 4, :00 p.m. 3:00 p.m.

Estimating the Value of Foregone Rights on Land. A Working Paper Prepared for the Vermillion River Watershed Joint Powers Organization 1.

direct Principal

Department of Agricultural & Resource Economics, UCB

RESEARCH BRIEF. Oct. 31, 2012 Volume 2, Issue 3

Marin County Agricultural Land Conservation Program March 1, 2014

APPLICATION OF GEOGRAPHIC INFORMATION SYSTEM IN PROPERTY VALUATION. University of Nairobi

Sorting based on amenities and income

Taking Advantage of the Wholesale Discount for Large Timberland Transactions

Motivation: Do land rights matter?

Local Land Markets and Agricultural Preservation Programs

FOR SALE: 1236 White Oaks

The Subdivision of Williamson Act Land

The Effects of Land Title Registration on Tenure Security, Investment and Production

RESEARCH BRIEF. Jul. 20, 2012 Volume 1, Issue 12

FOR SALE. Hawkins Road North 78 / Vacaville, CA. 78 Acres / $1,650, Katleba Lane, Vacaville, CA APN s: & 030

411 Acres, Two Coastal California Ranches, Estero Bay - Morro Bay, CA

Additionality in Conservation Easements Programs: Grassland Easements in the Prairie Pothole Region

An Assessment of Current House Price Developments in Germany 1

Purchase of Development Rights in Fayette County: A Hedonic Price Analysis of Easement Payments Submitted by Perry A. Papka March 30, 2006

Building cities. Vernon Henderson, Tanner Regan and Tony Venables January 24, 2016

Modeling Suburban and Rural-Residential Development Beyond the Urban Fringe

THE ACCURACY OF COMMERCIAL PROPERTY VALUATIONS

Farmland Preservation Agreements. -Frequently Asked Questions-

What s Next for Commercial Real Estate Leveraging Technology and Local Analytics to Grow Your Commercial Real Estate Business

GENERAL ASSESSMENT DEFINITIONS

The Effect of Downzoning on Spatial Development Patterns

Acres, Three Coastal California Ranches, Estero Bay - Morro Bay, CA

CHAPTER 2 VACANT AND REDEVELOPABLE LAND INVENTORY

APPENDIX "B" STANISLAUS COUNTY FARMLAND MITIGATION PROGRAM GUIDELINES

Determinants for the valuation of land Theoretical considerations and practical applications

University of Zürich, Switzerland

New Brunswick Community Land Trust

FOR SALE 605 Industry Ave DISTRIBUTION WAREHOUSE FACILITY Asking $395,000

3.1 Land Use and Agriculture

An Econometric Analysis of Land Development with Endogenous Zoning

Estimating the Value of the Historical Designation Externality

The GIS Behind Dakota County s FARMLAND AND NATURAL AREAS PROGRAM

Metro Boston Perfect Fit Parking Initiative

FOR SALE FARMLAND AVAILABLE ACRES WHEELER RIDGE RD KERN COUNTY CA

Incentives for Spatially Coordinated Land Conservation: A Conditional Agglomeration Bonus

Micro Factors Causing Fall in Land Price in Mixture Area of Residence and Commerce

Montgomery County Demographics

The impacts of land title registration: evidence from a pilot in Rwanda. Daniel Ali Klaus Deininger Markus Goldstein Preliminary: Please do not cite

DEMAND FR HOUSING IN PROVINCE OF SINDH (PAKISTAN)

Modelling a hedonic index for commercial properties in Berlin

ARLINGTON COUNTY, VIRGINIA. County Board Agenda Item Meeting of November 14, 2015

Northgate Mall s Effect on Surrounding Property Values

Williamson Act Participation & Open Space Subvention Act Survey 2014 Instructions for completing and submitting forms

Factors Affecting Land Trust Agents Preferences for Conservation Easements

Windfalls for Wilderness: Land Protection and Land Value in the Green Mountains

California Economic Policy: Lawns and Water Demand in California

49 AC ELGIN DEVELOPMENT SITE

TESTING FOR COOPERATIVE BEHAVIOR: AN EMPIRICAL STUDY OF LAND TENURE CONTRACTS IN TEXAS

Valuation of Amenities in the Housing Market of Jönköping: A Hedonic Price Approach

Transitioning from the Farmland Preservation Program to the Working Lands Initiative

METROPOLITAN COUNCIL S FORECASTS METHODOLOGY JUNE 14, 2017

PLANNING COMMISSION STAFF REPORT

Farmland Preservation and Residential Density: Can Development Rights Markets Affect Land Use?

Introduction. Management Strategies for Central Maritime Chaparral. Reasons for Protection

Using Hedonics to Create Land and Structure Price Indexes for the Ottawa Condominium Market

A Quantitative Approach to Gentrification: Determinants of Gentrification in U.S. Cities,

The Impact of Employment on Housing Prices: Detailed Evidence from FDI in Ireland

Insecurity of Property Rights and Social Matching in the Tenancy Market. October Abstract

Department of Agricultural and Resource Economics, UCB UC Berkeley

Description of IHS Hedonic Data Set and Model Developed for PUMA Area Price Index

What is Farmland Preservation?

SUBDIVISION GUIDELINES (As Approved by the State Agricultural Land Preservation Board on July 10, 1996)

New York Agricultural Land Trust

A prequel to using the benefit function to value non-market goods: identifying the implicit price of open space conservation

Directorate of Survey and Mapping NAMIBIA. Cadastral Information System. Vehupisa Kasuko Tjatindi Surveyor Directorate of Survey and Mapping NAMIBIA

The Relationship Between Micro Spatial Conditions and Behaviour Problems in Housing Areas: A Case Study of Vandalism

BANK OWNED. Southwest Dixon Specific Plan Land ±58.29 ACRES SWC West A Street & George Lane Dixon, CA CONTACT US PROPERTY HIGHLIGHTS

The Impact of High-speed Broadband Availability on Real Estate Values: Evidence from United States Property Markets 1

The Impact of Employment on House Prices:

Eyal Salinger. Supervisor: Professor Daniel Shefer. Center for Urban and Regional Studies Technion Israel Institute of Technology, Haifa, Israel

MONTEREY COUNTY RESOURCE MANAGEMENT AGENCY Carl P. Holm, AICP, Director

Walworth County Farmland Preservation Plan Update, Chapter 1 Plan Summary (Cover Document)

ArcGIS For Land Administration

Meagan West. California Polytechnic State University, San Luis Obispo

The Capitalization of School Quality: Evidence from San Diego County. Christopher Harris

AN ABSTRACT OF THE THESIS OF. JOHN EDWIN SCHEFTER for the degree of DOCTOR OF PHILOSOPHY. Title: THE DEMAND FOR AND SUPPLY OF THE CHARACTERISTICS

Introduction to INRMP Implementation Options

UNCERTAINTY IN COLLEGE-TOWN HOUSING MARKET: A CASE OF THE UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN

Kent/MSU Extension Attn: Stacy Byers 775 Ball Ave NE Grand Rapids, MI Tel: (616)

Crediting Conservation: Frequently Asked Questions

The Maryland Rural Legacy and CREP Easement Programs

Spatial Interactions in Habitat Conservation: Evidence from Prairie Pothole Easements

HIGHEST & BEST USE CHALLENGES AND SUPPORTING ADJUSTMENTS 6/11/2018 KEN MROZEK, MAI, SRA, ASA HIGHEST AND BEST USE CHALLENGES AND

Rural Demography, Public Services and Land Rights in Africa: A Village-Level Analysis in Burkina Faso

ORDINANCE NO The Board of Supervisors of the County of San Joaquin ordains as follows:

METROPOLITAN COUNCIL 390 North Robert Street, St. Paul, MN Phone (651) TDD (651)

THE EFFECT OF DOWNZONING FOR MANAGING RESIDENTIAL DEVELOPMENT AND DENSITY *

Transcription:

Modeling Farmland Conversion with New GIS Data August 7, 2001 Nicolai V. Kuminoff and Daniel A. Sumner

University of California Agricultural Issues Center One Shields Avenue, Davis, CA 95616 TEL (530) 752-2320 FAX (530) 752-5451 email: agissues@ucdavis.edu webpage: http://aic.ucdavis.edu

Modeling Farmland Conversion Theoretical model developed by Richard Muth (Econometrica, 1961). Agriculture and housing industries compete for land in a Von Thünen plain. Direction of conversion depends on demand elasticities of housing and local agriculture. Model is rigorous and provides insights, but lacks institutional richness necessary as a basis for empirical analysis.

Muth Von Thünen Plain, 1961

Objective of this Study Empirical analysis that examines the causes of farmland conversion using a unique dataset for California.

Farmland Mapping and Monitoring Program (FMMP) Since 1984 has used soil surveys, aerial photography, GIS mapping, and field checking to track conversion at the county level. Produces biennial summary reports of conversion between 6 types of agricultural land, urban land and other land. Recently made its GIS data available. Source for our dependent variables and independent variable for ag-urban edge.

Solano County CA, 1998

Tulare County CA, 1998

Urban Area Characteristics, 1998 Acres Population Urban Perimeter (meters) Ag-Urban Edge (meters) Tulare 48,525 361,400 875,369 696,685 Solano 53,129 385,500 524,923 352,014

Theoretical Model Landowner maximizes net present value of land for farming and sale for conversion to urban and environmental use based on: Current sale price of land for conversion. Expected future farm income. Option value for future conversion. Relocation and transaction costs. Personal factors. Regional level zoning and development restrictions will also be a factor.

Dependent Variables For 1988-1992 and 1992-1998, average annual acres of land converted from: Agriculture to urban use. Out of agriculture (ag-to-urban + ag-to-other). Into urban use (ag-to-urban + other-to-urban). 42 Counties, 2 time periods, n = 84

Independent Variables Urban edge (+). Change in farm income (-). Change in housing price (+). Change in population (+). Stock of land converted (+). Number of development restrictions (-). Dummy variable=1 for 1992-1998 (-).

Independent Variables Independent Variables Same form for change in housing price. Change in farm income: + = 5 FARMINC 1 m n FARMINC FARMINC m 4 m n m i,t

Independent Variables Urban edge (+). Change in farm income (-). Change in housing price (+). Change in population (+). Stock of land converted (+). Number of development restrictions (-). Dummy variable=1 for 1992-1998 (-).

Independent Variables Zoning and Development Restrictions: Ag element in general plan. Growth management element in general plan. Urban growth boundary. Super Williamson Act. Policy directing new growth toward cities. LESA. Ag Conservation Easements

Independent Variables Urban edge (+). Change in farm income (-). Change in housing price (+). Change in population (+). Stock of land converted (+). Number of development restrictions (-). Dummy variable=1 for 1992-1998 (-).

Econometric Specification C i,t = β 0 + β 1 EDGE i,t + β 2 FARMINC i,t + β 3 HOUSEP i,t + β 4 POP i,t + β 5 STOCK i,t + β 6 RESTRICT i,t + β 7 t + µ i,t Where, i = (County 1,.,County 42 ), and t= dummy variable for second time 0 period= 1 for for 1988 1992 1992 1998

Empirical Question Are urban factors or farm returns important enough as determinants of farmland conversion to appear statistically significant in our econometric estimation, given our proxy independent variables, omitted variables, and assumption of perfect expectations?

Results Edge length and population growth statistically significant and positively correlated with conversion in all three specifications.

Results Change in farm income positively correlated with ag-to-urban conversion. Change in housing price not statistically significant. Number of development restrictions not statistically significant.

Conclusions Urban factors, not low farm income have been the main cause of farmland conversion and new urban development in California. Spatial pattern of urban development affects farmland conversion. Results probably apply to other states with large urban and agricultural acreage.