Agricultural and Prices

Factors affecting agricultural land prices

n the twenty years that preceded 1920 I there was a 245 percent increase in the average per-acre price of farmland (including improvements) before land values fell sharply. Today’s escalation in land values-364 percent between 1957 and 1977-prompts some pointed questions: Have land prices reached their peak? If not, when will they plateau, if ever? Will they then decline and, if so, will the de...

Location determinants of agricultural land prices

This paper analyses determinants of agricultural land prices in Sweden with a particular focus on location-specific factors. An asset-pricing model is used to decompose agricultural land prices into expected returns from land in its current agricultural use and expected returns from its potential use. The model is estimated in a cross regional context where explanatory factors relate to regiona...

Mean and Variance Dynamics between Agricultural Commodity Prices and Crude Oil Prices

Discussion of Determinants of Agricultural and Mineral Commodity Prices

It is a pleasure to be invited to discuss this rich paper by Jeffrey Frankel and Andrew Rose. After the events of the past few years, with a range of commodity prices exhibiting great volatility, it is not hard to motivate Frankel and Rose’s choice of topic, seen from either a longor medium-term perspective. The authors use annual data, mainly in a panel context, to examine the relationship bet...

Crop Prices , Agricultural Revenues , and the Rural Economy 1 Jeremy

Policy makers in the United States often justify agricultural subsidies by stressing that agriculture is the engine of the rural economy. We use the increase in crop prices in the late 2000s to estimate the marginal effect of increased agricultural revenues on local economies in the U.S. Heartland. We find that $1 more in crop revenue generated 64¢ in personal income, with most going to farm pr...