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1978-01-26

Issues Affecting the Availability and Price of Land for Agriculture Issues Affecting the Availability and Price of Land for Agriculture

B. Delworth Gardner Brigham Young University - Provo

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BYU ScholarsArchive Citation BYU ScholarsArchive Citation Gardner, B. Delworth, "Issues Affecting the Availability and Price of Land for Agriculture" (1978). Faculty Publications. 3745. https://scholarsarchive.byu.edu/facpub/3745

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SUES AFFECT! G THE AV LA ·ILITY PRICE OF * " D F JR ACRI.CULTURE

Thi pape

• t h V

ag icultu

t preserve. p

fi s

d

'.B Del r h ** dn r

rev ews some d t r.e a

he discus es he hug

ing a cultura

ere se in l and

n recen years and so e of he imp icatio

The in 1 S C on alu e he e d or ublic

1 nds for a r cultural us +

1 nd

ic

for

. cy

* ape p es t d a roia Cha e ting of he ican Soc · ty of

D r, G annin Found tio ·forni B rk ley and

Janu 26 , 1978 ..

of Cal · forn · . Da -

nom·c. , U1u er ty tu al Economi s

2

he croplan b s

.-I An verag of

the Un~ d Sta is app o 1.ma ly 385,000,000

acr cres nt s h · s ba nnu 11.y

a land ele r ng, rr ga d ~f1a e de elopment ~nd cro p 'n

land pre ' ou -ly held ut f ro ucti ~ On e other harul. an

o 2. 7 m llion ac s of c·ropl nd is los to 10 1.-a r ul u al u s ach

year. Thus th re is a n loss of 4

of one p re n of h a ional b.as •

ion acres or a ut ne t'h r

Even 1 S V ry s 11 gure howeve ~ ma . • a er t he se 0 n

0 his lo s of op a d on a a ·onal pe he 11 C nser a-

ion s rv h e tb hr ar 266 ( 9% 0

h p b ly t 11 bl and) in pas ur, foe an

0 r u.ses Jh ch coul added h cropland b e £ cally

sibl or , ocial y de ir o d s . One vi w heref re ha th

and b s q te adequ 0 O' Ide for h gr ural rte ds n h

Un ed es fo he s 0 tlie nt~ h entury at lea ]/

0 or~ l g.u s t t op « !he

to al nd .a a d 0 d . 0 ps 1 he un- en r ason ly

s. nt s·n e World a II Th 9 c~o l nd a reag 387 000 0 0

a f f y r gh y 96 this figure h d drop ed to 33 000. 00 act

bu ros again o 1 e

1/ Cotne p p ct

l_l i.d pa

11 3

n G. 0 L n ER -630

ly Use

ure: USD.

ause ai o o d Foo and Fib r•1

ly 1975) pp

3

Th ough u 1 e 1950 ~ and 1960 1 s , price p IIl ba ic

co d h Uni St t SW suppo ted

1 1 1 d se, a ' de olici s 'Wer in ok d to hel 1 ·tu l

suppl . f. a rodu t n ord r O Su 0 t pr c.e at peg le

F o:m 7 niill on to 65 mill ' on acre t o · produ n

he e rs 196 -1972. Th · a.c:reage s fourte n to t ty- OU

h ORS d tooth l es. By 1976 bo ver,. mos of

th s e g had be n turn d a crop produc n und r be

i pe us o far, pr cs partic ly from 972 to l 75

13y 1975 1 owever. , ha old nemes s in au a icu tural h stoey 11 d

ex sa upp y h d re urn d ut in downward pr ssure on fanu pr ces

The Car r ad.mini rat · on rul the co11gres e d, c de hat o e

pr ce sup o t co ts pol ica 1y ace pt e ev ls under h ar e ·

ann unc nth 1977 farm c upp mus b curtai ·ed by pric

land aside ograms. a 20 ercent e aside or he t and 10 er en

for he fed g ins

The vidence s abundan ly lear hat his ion nee d a

Sr OU hor a of 1 nd a lab e for agr· u tur u e To

g ven our ragrams to snppor incomes ·n he g 1.r.u , ura

t u· e

be n r..

bl sbing ric:: uppor fl.oors in n i s h

ndu e arm rs t of product on If

o di ons l.il r c-: sornel ow :re sed a , c. ur pr du tion b ame h ·

po.ft bl a1 if nt had n as de policy th e m

be a dequ e. e:r: o 'b brou t in o prod 1 'io ~

Fur h echnical advanc. is bond o ncr ] Od\ C i i

nd gr at r dos s o cap al bor

y: lds ubs ant an s r t the e of lan Is mpl

canno nd c mp lli g nc u1> o r na ion faces

a ritical problem in h ore abl u l re in hor a e 0 g ' cul

and ,.

The Pr c nd

or in tjon, conomi t: a l ast is the p ic.e

u al land. r is the pr c..e t t pr e ts he per

ac c. vealth h t l ers h v t d up n 1 d and t.h arm rs Ulll

pay if h y r o a qu re ·t or rodu, i"V" ' purp s s.

Columns 6 and 7 () Table 1 l" p r h al e r: al es 0:

r cul u 1 lan n 970 dolla s d 1 nd pus ilnpro ent

res · Ct V y fo th po lo ld 'War rr Bo h eri 1a appro~ ma e y

r p d ov r the p r

The e:mendous prof· ail t 0 h 1 land

s shmm i T ble 2. T e num e

colunrn 3 and ind te he av ra e r l ra e o re urn m bold n

d th ugh th pe iod spec.if e · n C lumn L () ................ -1-, ...... ~ • f a t , pica!

a ricul ur 1 ·nd p h s d n 9 6 h d un il 975 and

th n o d tl o r urn n he origin 1 land pric

~ uld ha ,e be n 3 2 p r y r. Un, or ~ n te y n dat

av abl (m the turM , i h

er m xc pt ' rs rn s a d to w-h _ h -w 11 r.

5

t n eds o be mp asi a tb t: he ea eal · turn orre d

in ation uh . ey ve y gh ompar d it al :re u m

hdld"n () hr ca ital s s n h erica econ my . . e rca.

cap tal the onoroy whole h a era. ed. u t un er

0 p r: nt o er h s cen ~_! ~ her s ~ o nt tha . y ds -repr. en r 1 C p tal g n u from ho ding land. The annual

r n S 0 from using d n rod ctiv pur uit h V not b en

i C th se :r urns cep s hey h been apit lized in o h

alu 0 Th s, h re s no oub e coun i g.

Bes·de the r 1 rates o r tu , o o he po nts

a:r WO of e T t i that her :al ra e , urn 0

land only r consi t tl h gh r han ose · o land plus m_prove ents

1;. ga dle s of l pe · ad co de d Thi o ob rat s h po nt made

axller h h r r.-e UI o la d ar h ghe han h r al r turns

I

capi al pr a1i·ng nth on my s a ,hol .. Th o ·her ignif·cant oint

ndou inc.r s in al es of r turn n the lat fi

y a pe "od (1971-75) co pared dth the s · of o·a pe od Rad

197 d a de 0 is er od

en mor 11 b

Tl e t ady -Wold r II

a:n l.S one o t puz ng p

pla , i ns ha b no · e ed

!!_/ ta om J h A e f re o Sc V 8

th rest.tl s . uld pr ably ha re en

r to s y about tW. period ater.

i in th r 1 V lu. of a r cul ura

en.om of o um

of h mar · nd ed pla usi le

n'' 'Jr er 1976)

.a R rve ~ 13.

nk

6

. ruos. o ous r 1 d p i s

d inc s s in ne u g l.ll

1 co ne. how r , is a unc. o of o h he r · u and .c -s so

cul u-ra od c ion nd oh ght el ed 0 and pri . ase . e us wh has en oc:c rr1n e.iv paid by

farm s~ ls r · so b e 0 nfer tha s r 1 al e.s r

a ibu ble 0 .ncr gr al rm outp p ces'Z· Th pus e

r a pric 0 all -a a "he farm gat i shown n column 2 of

Tabl 1 an onl may be f u d

in ·o umn 3 S "nee W: rld. t r l , th ea of t he fa m p o-

du nd C 0 pri 19'•7 w n Lhe ind ces s 00 t 184 and 2 6

r sp c. By 1955 ·1 er p • d X had a len

by 965 0 128. The lo C"'.lne ·n 1970 th e y

The 972. fi u e ose 0 a td by 197 had jum1>

in 1956 .. y 974 he sup ev n ur er 0

by 976 to 1 1 fa 1n hm simil r

T u 2 alt · u h fann

he a linin once a an nd a e

r

155 by 19 0 to 132 , and

wi h

151,

76 ut

n~ pf

Le

valu of 100 .

abou

ove

h sa.m a

harpl

nt but 1th

e fro 197 - 74

tn the

y o -t r d I p od Only some catast o l · ld;dde

le I h s a pl r due d food prod c on could ~nc 1 arm product

rices n futu

ic

7

Comp c and ric s

r ve 1 car ela ·on , with th exc pt ·on of t s. o t r 1 o 1

972-74 he-r fore, to · u e si g la v ues o av r~ le

agr cul. u al r es alon . 0 course f pric and

u u • Chang in output pe un ,t o "nput will e el· ted. t land

The othe com onen: n ne inc m cost he produc of

Could b · bat n have

eclin n ou pu pr'" es b cau e ei h r p o ucti it

n in t:h

ncr S · d

ti hav d lin d mor han output pr · c s! In th r cas , per tlD.1 ,cos

roba.bJ y would h -e d c ned.

C n ·d r the qu s ~on of input pric s firs . compos e o price

by onl n product n npu sin l t rms found in ol 4

0 . T bl. L Th~s erl . is ch sea e than he two OU put pi;ic s

d" Cll ed ab , al hou h mil r in di:t ct on The hig alu DCC r d

n 1951 a d h 9 0 and l 7 ~ There a ad cl·ru.ng end . hrough

950' and l 1960' d. a sharp ri f er 972 he igu e.s for

974-7 -76 21-12 - · 2ft r ·pe tiv ly . One mu ack fa a . 5'1

t gh ] 24 ~ nd he numb r so

A compa son of p

pr c r cei d by f

r ce v d. and p ices p d ev s ha the re i

a er be 'O 970 han price p d.

D r:ing t e r y 1 70 ' p C d r s fas er but y 19 7 5 p ·

p · had caugh up Thi t 1d v lu s

y lOt s mp o farm ou put pri s ri i re farm

n d f tra e h v ens ad·ly or en · g fo in u . pri es.

tr ul · u e ou.gh ut ntos of h po - orld J II p r od eJ ce for a

coupl o ear a ·er 972 .

8

I th . on l': rl ing l nd lu s can t b ou in p s of

u pu and input p rhap can b · found n be pro u

V g i d ... of er roduc ion per . er o d , o e a ur o

5n c lumn f Tab1 • Th in rod c v ty chan e app

the inde f m th mid-- 940 o the m· d- 950's . F om he -1950 onward

ther s a up ad trend n 1972 when an a ng off

It s oo arly to ell wh th r be e ont

wo ec de up d cl b- ucb de nds on h quant y of pr a a.

hi tor.

ubl c

inv s m nt in r cultur r ear hand . en on, ther

nd · h a i1 b li y and pr ces o u

so imp s d on a.gr"' ultur · ~ n h form. -of 1 bo

gy to ag cul ur ..

· ealth ands f ty

n 1v.1.,ronmen 1 iipo t n de rm:inan of inp t p oduc i · y In

ny a , · le ind of ro uct y n the s r s of al laud tt

n to ve .ge he h ough

L '· s now consi r n f . inc me dir ct y ~ be wen

land pric

t he s ul

1et f nn incollle as udied by c.11 fi ld in 196 _/ Ue a . cula. d

r 1 d . e farm incom and he. at ac. e values o

w s de i e as

am

rel sat to er acre ne· ncome . et farm in

r · ve u · s minus r a -r no s , land incl d d he alu of cap al

.1. p o em n s The rat o was ~ ely ix for he l

bee u e ne f rm n ome w 1'h r o dropp d o proxitn ely r

or 94 --l~7 a r'od whet ar. inco e e bu land pr s d dn t respo

p ·o tionately .. rom 9 .8 to e r y 1960 ' th ris in t e

r · 0 froln ao foor on r y ·n. ade a og 1 ulat .on f r 975

and h a o -was 14.5 . I amp edlc fog 1 h a io w 11 e en

~j p .. cs and arm l c R i nsh ps" ol 25 u s 964 .

9

gh r w n h d ta final in_, ince ne fapn ncome a

fro-m 197c bu land p C. continued pt a d.

The hap r e in his ,:- o imp i th if r fa r x e ting

con inuin ses in ne i om ha w 11 eap1t ··zed in and

alu s o al em t ely otker var· b. a e e p la:u · ng · he s n

'fhe lat r is impU. d ildly by ·tl er Schof d r sult.s .. Re

mat S a C OS equa ·o ·h t reg e s the og of p r ac n

fa"ttn nco or h a e" · h independ n ·· v r· hle on h 1 g of pe a re

f rm es a v lue fo ,ea h s: , th dep n nt ble .. Schofi ld.'s s mates

r p r ods: a e a 0 1936-1940, 95 -53 n for 19 1- 3

( ee: T 1 3). e s me s or the p rod 972-75. aeb. o

h slo oaf nts (the b 's) is st ti tic lly gni ~ nt at 11 o 1e

pe.:r.cent prob le ha change n and v · u ed

i h ch · . nn t f in ome fo1- 1 p ·od .. Al 0 e dat show o e

en enc for he xp natory po er o fa in o:m a ef c ed in h

R2' 0 1951 53 . A -ren·l-y o her var1abl no s e if din

he o var d l a-re impo nt con 1u <L is

implied b he 11· gb ( l elas·t: ty nd ns rent han e

j and v associat d ith l on percent cit g in e . ann income)

a r 951-- 3. The i n ic nt conclos on · m h se dat is t a

t m incom c.count for n rly 80 per n of h nal ar a on

among sta es n p r ac land a e an s er fo i ·cal a · or

i accoun ing f h ecula n a and valu l ob\1i us h ·

1 e pro abil y agrl ul · u 1 on . n C pl a C UC ol in

ag cultur 's b y 0 C mp or 1 nd.

0

, s h gbly ins true · e o s e wher he lar_g ·n and alu

from ov mbe 1975 to ov mber 1976 e1-e occu~ ing~ Tbe map (Chart 1) ells

tu ·h o th

over hi.

· ory.. I i th gr n s s where h 1 !t"

e id~ noi low; , Ohi Ind .. n - .eb sk

'in , s cc.ur d

n o a,

a.od li.ss-ou ._ s are o r- mo s pot t crops . Tb·i _s ,

c as i land alu our t: , n h orl maYk t o wh ~ ch l wi 1 r t · ~

la· r..

T imp1ic ion . a s ggeste b h se d

l) L· nd conve 10n d d ma not be 1ttpo ant in r ·s g 1 nd pr ·ces

.as s a11, ed. The hi hly urbaniz d s s are no hos w r h h

1 d pr c incre se

sho ld b s a ,, ho e\r r ·. One block of h lowc-incr- ase gro

ew Yor ew J y Engl nd tc - a.

hose st ts hr

on ee a-rk t ran e of gr · lt.ural nd t otb uses .. I' and

a e an~ rd its va ue as ecula ~

V asse will

b d. l e Ol tak he 0 ultu al

zon g and ious o·h d vice to be d SC.USS d 1 r.

2) Th was n u b t in e pe at on for big ne incomes n

agri ul ure n h ea ly 970 1 s h s on b al'Jl transla ed 1

h · ghe r 1 nd p rlc s • It s no · d f cult to s hy a ne ., r for

ag xpe ted. E ·ch of the fo lowing a tor ould

el bor .t d a g a 1 n h;

a) ·The d llar de . ua ns 971 an F b1:u 1972

'01 d Ame xports m r rac nd .•

pa t u1 r C n a

tn ·d OU g an m r com t V i orld .m.ar.k s. Thee

ha e be n se n sue ess e ea s no~ a a i . a ri . .cu ur

l

por s .

gone

0 our Y'-'

0

20 bil . on dol .

t 'l no 1 pend

stim t_ed ar me f

ar ult 1 e~~po t · h~

heh i ov r half

ort d oiL

g icul u tha

h d o

ha be n

ul y

ent a ric.ul ur l acrea e is bei d d

tr xpor

b)

t - er rps which ar

s·ng per ca t

t h incom ela

in omes n oun a und h world and

ci or ood cau ed t d m.and cu ve

o o r p d ct o s hi t t t e r h .

c ad monsoon ·the:r in South nd E t ia during he pe od

197 and 1973 hoe ar s .

d ) T' brat d

dour

o - ail an imp

gain pric s n .

) Th ancho· is f oa l? u sh ft:e th

)

and 1 had n f on WO. d U, p ces.

f ·11zer .

Th

d Ill.()

ny

grea ave o es im

phe .s biola s s

nc ud·n mer1ca 1

t c for cas of old u

and gr ul ralis s, p

farme that h

a ng r a , ·v foo pr c s a

i y · agr. t 1 · u uct n

on

on

by

d

sed

g) 1 r spon oh ld · ees nd ow r serv.e s oc s

of gra n, er

U S far.me s

ose 1 ·ng o · l> odu ion 011 :rols n

rin

Ho

land p

a sess

12

h) 1 po:t·e sin m 0 t i , ·ha · ho n , l

urop· Econ .. c C unnu 11 the . loc a

p ed h in X 1 fo rt. s rom rs

tha · ·, nsum. s d d no cur ··1 heir d mand . d p

no i e se woul ha 0 cu ed l d pi s b

pennitted ·o s . The eff c was sh, f h main hurd ll of

upply and pr ce ns abil ty 0 he nt a ·t a g am

nd the e ort rs f r n ..

i) ·na y th nco e t d in 1 tio . oU.cie t we ,

pu ued. u thi . oun y over 11 s ears rov d d ncenti s for

imr st ent n · cul u . and specu a · land .

tan a l o · actors he :r cen iu , s in

as et o b de m·ne. · ia , d a r s T"Ch pro j ee

uant t· e Y l effec. ~ o · h tor and., in y r o. \,;t e

hope to be able 0 s y som h·ng def in I ti than can oday w alr dy

k ow howev -r t p di Ql\S hi ·h l,: h a · 1970 have

n t been. 1

In thei world hunger d 7 / C l ' f u y-· my , a om o leagu s sugg . it y the

xpe ta· on stab Rhe in 9·7 and 1974 v g ri o 1 rg n 1 nd

ave e oo op·

1) The , g ne. a bu

food balanc · snot

chronic food ha a

1, . r . Har ld o .. Contem n,. 197

st e s ol1o .. ..

no comp e ans nau·

und 0 nnd llllent

s. SU: p u

lll tll wor d and part .

T . d "'

b e o 1d

l rans "Orm t · on

il t cu h

cu a ly i 0 th

A Cuu n l' oblema . :r en En erp i

opu at on

d

ri

0

3

2) Rap'"dly nding w.o T z plant cap.ac t h sign ' fican ·l

th ce and suppl p obl ms t ha peaked ahou

0 s go ( 1972).

3) Th lcultural producti C p ci y he United Sat sis ba icall)

stro g an the · f r an ~

iC)ll nth resourc b se an

or CO, ued produ i it · rowth .

4) Th :real rice gr dn vill remain ougbly constai1't for a e · year

· nd en likely w 1 beg n to decline

In the cs of oin lt,) my C lleagu·es -Jee

g ·ai prk d d not las a . lo g nt ·pated

· an p o-wn very sub st ·tiaJ ly

ga ~n

00 pessimi . i

pt far s

in

,.. The

e os, · bose

a-r y 10's

an surp us s f whea .l feed grains 1 . e,. and o· on are; bu ld·n u .

The Cal forn a an ys. s med a cot ta1 t re orld p ·ic for o an

no us ained chan e u weath pa t na V ryo e knows th pri

0 a 1 ha r s ·p ec p ously .. Th ·- fe t Otl a cu tu ·1 uction a e

not be-en per ep ibl howe j as h productiJ n o ood in orl as been

at record 1 vel n 1975 197 an tap 977. Also h C l 1 fo ia stu y

a t med b inves ent in a cul tu al res arch an d eloptn nt in th ni :

Sat s ould cceler This i beginning o occur a th illlpac on na ional

food pro UC: ion ·11 e p sit+ "' e in he years o co e.

.a d con lu about th r , 1 sign ic nee of d ng l p ks? I

don b li th.a byn e..:;S ril . 1 ct a al sh r ag, of 1

land .n any p odUC ' ·• y . ·hr h 0 the • ·ing y

, xpecta :ums _,.

0 :ro i a 1 od pr,oduc ~ o - hat "1er bLi d :in lle ·ar

197Q l + Th e ·pee io 1 .e no 11.k ly o b bone o · a on 1 roug ·

he 1970 1 s and th 80' . I I ru co rect the. rate of ncrea 0 and

rlc s ur l:Y fal nd p 1.e · m gh ell f 11 solu l

lre y her of declining and p s he • • d est: w 1 r

r cent incr s ve n .r. at t •

0 h ass d s s . hes cycl am 1 · ud an

h basic economic force T stock mar, a god a ple.

S ecula. f , rvo caus·

of ro flo sand vie er on e do ide:- I

he up rd rod · in land pri es d ~scus · d bo e hav

ar n d by 1 v ls

s go.i£1cant that

sin h 19 O's)

long s cy · s go~ This my h te to pecu ato ha

, her e~ f w rj s n and apecu , tion. Thi is the s uff f hi h specula ive

ade. Th ffect '1'NOul b o i cr~ase h siz o tl bub 1

ly in ns · f y t e. s r of he

eds on s

uat o and 1 n 1, bu t . ..

ic

r pe

h in, a pi a

.i c ase n wo crea e borro ng c ab

h

d as fa

for land ad raise 1 d p ic Th cy 1

nlar,gelll nt o · ors h

Hi :be.

Th s

hen

SD

sugg s th one-th rd of Amer~can fa e loans i h 1e go m ~nt

and · th th comm r al ban

·hos lo n !ucb f ·on m st rihu bl to ry gh 1 nn

r C hi.ch a me s b n y ng for . 1 1 s , · , y -rs,.

One are h s or l p · Rll 1 a tb phe man

s r . in X. .l 1 oc.c.u ~ n 1900 ' ( e bl 4).

V t' rap"d escal ion ·~ n rm pr due - C d r ng or d c=\ s

1915 19~ oll d ad~ r e ter 1920 T e ndex o - p r ac and

bui ding pt' c, s .,nd a hy lag ed ehi d p odu 'I'. a es-

15

Tne , ~ s a ry :rap i er e in lan p in 19'19-1920 and he the bubble

bu. t . B 193 , h i de · b d f 11 n o 55.3 1 s n h lf d : .e level n 1920 .

Cl a ly he 1970 1 s a no the 920' • Th der 1 go YU ~n t is inno i e y

mo. o er·ul - che ~ and mo B' g Bo h rly bani· was len .. vate

fin.an l f titu o s r much s • r.o g r a d b tter pro·t ct d. by f der

·usu a.nc . .. S 11 the u nt cash flow situ tion in ag c. m: could ·b

ser us ml y be mo e o .1. sp ula . on gets furth r out o ban

Prime

oh Ont 1 curr n inter at 1.s p "· land pr rvat on .

Seve a stat: g. s a ur , l.Dcluding Cal · o nia' ar onsid ring ctment

0 gl z ng 1 s to, p:re r e high product· ty 1 nd for agr cul u use.

Th " pr, f en al polic e and other pla ni:n device si :n d t,o p ,ot ct

ag -· cul tu~ 1 lands f om co r i n to o 1 e uses h v . ot b n v ry ef , c ·

Som . f our b a r cultu a nd cont es to b conv r ed to e. q> n g

urb 1 z:at1..on 1 tr sport. ut · 1 y ease.men or arie of publl p1~poses .

Soi s gued by b z n ·n for agri ul .·u 1 1 d ha or

d a t· ,c me u a. no ded t top · his aval n ha be ore e ou gr cultu al

land short gs e \l.l'.' .

Of cou e f C act on s eel d o r ain p-r!lme 1 nd and a rlcu tur

us h ·mph. t:ian s tha the 1· nd l lei C nn ef ici ntly a loca eland

r sourc~s among ompe n u es Unde· he schemes use changes

cul s ill occ r 1:te m k t 1. lue d s e e g t nougb

too s, 't the p oduc i n co ad an age . r t d by the a,., pref nc• Th C,I111(

0 h roposed ·nd n egisla on s qui e d. f ren ~tr mov s

!_, Se Hans,en n vid E .. nd Seymour .. Sch at t1p me Land Pr er Cal foruia L 'I C er.v ton ct" Journal a s ..

& at C nse v { 976,): 180-208 ..

6

h l ion d C on rm h mar en r ly by u. ng prod y

C to land or p e at on d by i g th po er f r ans.

nd u e ch d sign d boa ds

t soci. y appe r ·o ge n. he ction o pr 8 in icnltural art

ar ,•ourjon p due (benefits) ·

od ad fiber to e the nu "r ' tianal

a g owing a on and. orld p pul ti.o

2) Loe e ono c bene 1., s that de ~·ve fr a 'ble an: c

1-ndustry

3) Op n an oh nviro tal amen ace u c ly

o ur n r s d n t and

4) ore ff cien orderly and fisc-a.lly s.ound urban d· lopm n _.

Gi n hat the are h Joint ben fi s hat hopefully be achie d re ain g

h'g p uc · ·ty 1 n n agr ul ur hat is h a onale for x a mark

E'a lur d Pr"ll LRnd R tent· on

s long as prod · ct nd fac a s a,e per y compet:i . e,, goo

ar pJ:i a on as d h 0 ec ive,. a d no · nali . st•

g nerally con eded b C omits a h ee rk alloc t

h 5 C lly op # mal quan .. y of 1 .nd o va • "ous US· 1.'hus i .b

i l:' mov d from oca ion and s r ssen ly on-

et allo i p ed by h p 1 nd pr on 1 gis ion

sho d b f

fie qui y

s C i1n a 1 no

9/

n add tion~

OU db ar ·u1

rovid a f l d

rom Gardner l'ape pr se

ion . n ie

he onseq int nns of

y ev lu t d /

vel.o m n of C ass 0

r~ an

17

't ailu ha lll.a: j y publi n rv n ion w h h land mar ' ·t ..

h pro ch t l:tz 111 b o dis"'u s h fou j in b fi

11 g d ob s land e n ther ar el ment

of ke · f il ha us y h r :r,n V' 0 t 1 m k m oca on

d . s · on . t i d ffi ul o see by the are ill no alloc uffid land

food an fib r pr due on. The fo d and f be or o onom.y s as

co p ti i ,e a ny a he , d fo d and ra dl to chan ing

conditions in upply nd d man.d. Th enormous ncrea e in agr cul ur land

r e 1n the 1 t fie y r hav

r pr c a

th re 1.s

een due p

he a ga

thin

p y to xp eta ion fo

d scus d abo

the l nd ma ke

If ur e higher oo

inc · ase

pr ven h -ct ons -r m yi ing n oh :r land pric . Th r

h nd he more

us .. ·Toe a er he V

h · ent 0 r e 01:'. d

ult r 11and r ce

i be or lad i

advanta of can a

r-ad nag ul ur 1

ectecl o

othe 1 nd

ri ultur he

o-mm

g er ~u b · d ac ·ng o r pr.educ s r h pr · ty o pro

d g ood a d h s

who c mpet o-r 1l ~1.m

The ol iv

wh n appli d to 00

va.te goos and

Th r to y rn l dis

us o chem c ls) bu

00 1· 1.

·on.g the omp t V po o.r ag

lan.d ..

y ar UD\J don t tn vry 1 va

d product me h requir n s

g "fie n f ct n t o vi.ous . n consomp io ..

conomi sin n of o d and b r ( a · 1 e

hi ould ugg t oo m ch f ·or n pro uct on - not

1

D c s on m e ac o

-processor_s farm au 1 er

tlie sp c r o f a ;· cul u:r .s- ·h s A op

ve 1ypo

rs

sos

n . ultu elds> a :ov rrunen agency per nne -~ h V ob . ous stakes

in ble an s b1e ndus Lan ,o s a , d" I ct y c· d in U_ ql.l

VI ,y by , h.e pi:j t land e t on issu If and i mrnobil · zed in a --r eu.ltu us

h for t h ,di ect v th in in p i ap_pr ia on ha ould hav - oc u

i ·tb the ·po ib ty of e.hang ·ng use na f mr et Theo h rs 1 s d abo

ax affec d :mo e indir - tly. Thew alth mpa ts howe er, ould b t al

or the al o - pos e r neg Conce tual y, nd ar

iden ~

C 1 0 cond cy bene i and cos in al be nalys s

d

addit on heae e - ar .r t:il cun ary a con r- t · molo ical

and bus h y re 'l.L ly 't' 1 ct d n h m rk t p . ~e of d -

As uch they qu a.s collective · ood nor el an ,e •e .1a s

in jus_· y ·ng .10 · :rf ·ren ·e 'Wi -h

Som mi b a gu t at ·ncome

pr :me and t: t n n n o de-r

1 nd m k,et'"'

ealt't di enc s among g on y us i

p- up he domin nt oca ndustry - a

Tl e argrnnent s t n , ho ver a el d o the s . ond ry benef · c s f' t

ab e b ca s · h t , d no o be

ob · e. f w ke who trnlJ be

Many f sues .r

ord r Y a d i .all ound u b

l od cannot be d ·v lop.e for ll b"

r no s .zon d tbus co

Wh th r h su1 s- a 1 ore o le

c a ho ,1ev r. d peuds o

a p ·odu ng b n a1neni · · wli:

low inc peo e may appl y () om

f l c 1 lan s 1 f in agri ultur

p i ble to rodu in ·mo e

V o;pm 11 by agr C J. U al "Ol"dn f pr ·xn.e

pu: ose if to pa C s ich

ealth g on be lder 0 els.

ffic n urb 11. d velo fO ent

h y r · h se

he cos s e o b · ~ ng g ubl • c ut i s

19

a d tr nspo t o thes parcels et ·• It i no ~01s in p inciple b

rb 0 1eapf ro in ' 11 be r c.e ov ha f e market w .ld ha

p due d uch ould de nd 0 ri u zc. o ,z n r · cul u 1

d the numbe 0 zon ng v r an es gr nt d and · he a 1 b. y 0 es

and o her and class •. :i.cat on data .

F nally · here he as wl1ere rke a.ilu .~ s n - the

er op n pc an en: ·-ro n 1 a emit s .. ben 1y

me

there is li

In any case

for ca lee ive oods d s ce ther a . e no mark ts · nal

e evidence availa le as -o am n

n prin i 1 the m rk ll n t

quant ·

tio

of h e am niti and er may b some ju.st," i

s are •rth .

he o titna

for soclal

0 med his mare ailur •

nd qu ·• y I plica ons

g i ant ha oh th 1 <l pa iF cl.a s cation s of

0 C ns V t n Service n h tor n Dl s tats b

i-- d to de.s "gnat pa C l , are tr t 'y 0 - en·ed d al

pod cti ity . Lo no rol us 0 the o n ad

ag_r ultu a1 r due· ~vity may not b he only ptu:·po for land

ntion in agr cu ur or .en th .jor on c teri t tat do o includ

lac t·on factor may e qui' in· ici n n producin des· ed sults ..

nh ne ng vi.-ronm n e r nov g c tn eti on for urban nd parce s,,

d urbat spr 1 r all · e.d up n h loc- ion of he la pa .eels

aff ted . Urban eo who wan h jo ~ t p ducts of land r tnay

11 b u r ~ed and di~appoi din b ~ sult of th ·a .100

t r ains land in

produ iv y riter ·

~. ul t1 us · b s d nl n agr · :u1 1 a

he

ti -

20

mus a b r a b no 8 d u e · or he

e in r V d'ng gn s n th o m o ce la iv

SC re ly o ela ve v e 0 th er sou c. in a tern ve

u s . s 0 p Op r igh s 1$ th i t · tu. · :an h p

ark , fu:n on ff i tly. Wl n P oper y ri

uch u .d be he c s land d pos . ~ on 1 d -- h e

m t: d e no w --k ic ' n ly . · oci. ty r

s ar i ic\lltur lan ·!l food d fiber pric s not ·r

cont 1 tl equ I·br um V s the land ark w fect1y

11 0 ty. f his tL is rumen

sea y i epl c d by le pr me n n s h me

c.ono C r polit l j 1 d ta sour a loca · on, 11 be

o r ab e ay of whe b r gricul u lad be o . ng sea· et:' r or

pl u1

,o he · · mnmon all at on is b t in n ,.s :ment deed. · on

-orop· . d h 0 t C p oc In f C > do th ratin

in h b V a a w d ·he pr s n h · o ·Uy in ffici The

lan 1 s . e tor 1 1,.s h ad guy who ks h. g h uture mar

C U · 1 an he res us He has an inc 1 and

ma ·ke pr C r f ,ct h an . . cipa ions of futur c re y .. at ons n

b ad .anc d fo b 1 · · ~ ng ·hat a part ric utu lbad ie ib or V

career plann r o sa no h ng of le · sla or d or 0 ea c n do

a be t job be utur . us h an on wh r be rely pr d1

al hough he p efe enc s · ned by 1 ou pur' h h re

lw ys som uncer assa a h mark a ion. Th y

or unc rtain (! el":: wi h gove nt al o a .n ho eve and

21

'V n a.gen y bur -u r s no o- 0\1 or an · ng h houg he

un tainty es ion s f . ro clear th 1 almost s ely e tn r fr dom

C choi e i h ma 1t t and b tt r in or on of r ·gon 1t tiv

It i ru a s gg sted a o e th he :mar may not rovide h 0 ti 1

th 0 le tiv ood -- op p bu neither will prim 1 nd

en on sch s. They pr s rve l · n on he b is 0 agr cul u a.1 aduc

and h r 0 be good et e n high duct · ty o · cu ural

lads nd p f ban ~ C c·v n hat op n sp ·e lly

1 jo ·n pod C lv h agri ultra use i is n empir cal qu sin ,i1h her

nd mark orz mgbsdona cu u 1 productiv·ty r er a wi pro

ore so a ly opti

0

sac el on ri a

of he ~equ s te lands i

~e o o n sp . e~ Jf t ·ere re cri · 1 hot e

· le and f i - n s 'l u · on ould e m t c 11 or o e

de th zon g on h a· o public cq i iti n

1 · m rke •

I i i gi; n d . on r y o n y be ht hr ar publi res .

o be etv d i _u p. ying o . pac f din

land r_ . ....... ~ ........ on, h n the qu · y s ue boils do

by mpas1 aw h lo. nth owne so p~ ·

he land n t us an b s pr vent ·n

T u unl S C01Up a ,on i given, e 1 nd o

b wold ' s peopl

-o c a ing h s

pr ..

ts

agr cul u 1 and by · Dl! ob 1 z

rs bs rb los es n orde:r o

rovide o le. od n·oy d by oc ty ·s ~h l .

no hr qu hat i of n ov o, d is that h urchasers of

- gTicu u a u es

land ar 1 h n hey would b

on poi y p of

1 be fQr h s

d o pay n ab enc of a and pres rva-

upp y s rm ved by gov rn n al ac in from

rk t con qu n e s pr ri e or th p c ls ich

:m n a a~ !able to · he m ket . I is a bit odd h r ore , tbFJ.t 'W' do not s e

22

urban consumers bby± aga n prime a.gr cu al and tention _

n ugt her do seem o, be devi es uclt zoni g b-y n ne do

d rans r ,o de

ha been no temp

o_ want ;gh. s at , n tig te

o nco ·orate t em n the props d e

y p b tu 1 er

a on and he

n

i.. ev n C n c 1ous absenc of ny discu s ,on f hem Wb. t is pe· h . s even

·mo ig ion h -an qu

probl mens sat 1.

Sn ri and _c·anclusions

n h y of suwn.ary·

1) I 1. .cle r that hy cal/ o ogiieal poss b 1i ie f r ncre ing

·ood oduc ion aro nd h - or d a normous~ ecially in ·OU'l:

,own count 'Y·

2) 1 ood w e ob· coin i C ing y C 't' e ood s oul r se

th a e fr 0 .o o. n p odu ·ng ood w uld

r m d food ou - ncr a

3) So. i ty ca e e'¼P ·ed o in r r ourc s · o esa.e c d

e i.cn if :food. b · c :m s la i~ 1 ·e ce ad uld have

a u t n al O g Wl OU . put lC e ng ec

Civ·en h ab e am v, y p'timistic • c pt for -hre .o s \ hi h w·u now

Su.mm• ze .. 1e ·· and pr has some omin fu.a

w mi t do a ou hem s fa· f cl to rn ·eco dly serio

prob em n my o in '•on i th un 1 ing es o · le· fre

s t prices s s gnal fo r sourc a 1 cat on . e mos V u

rk

s th th at o fu t r ov - nme , • 1 h land ·ma.I:"k I . a. d. t n

2

h Un ted a s o ernrnent h •S pr· es fa b sic agr ul ura

commod· th · t m st gu .rant

In ery · ho per:tod o im

surplus p oduet on in h g a ·ns and o ton.

could be back 1n th situa · i n of he 9 0 S and

1960 T. dl xog nou rest ons

on ricu u.:r

urplus di po al pro a

produc i-On are be omi.ng e e~ on ous. Th se

vir n n n.d o

h al hand safety of ann. opera rs and rk r ~O/ r

compe11 ·ng

saf t} o

sons for go~ ment policy to p ·

arm t rke s but i i not often r

i onm n t and t:he

zed t poli · a.r

co ting agricul u ea :tms of eff':ic ency w 1 out he atne

m

h n .· i - ost: as e srnent to tennin

ro c

I(.)

ar j ti · d

dis fecting he annua. mee

F br -:y 977 ~

prob ms

f thes

I s iln fo a augh

es r c ions on 8

ohn Zivnusk For sts'

c .emy of

ded

CHART I

FA · LAND VALUE HO · STRO GE RISE IN Ml.OW · ST

LV '-£ .AV. ~Gt 1NC/f A D ·_ AA RAG

• I .. 1 f..J

lH

Oo

l 3

191 138

197,S

1 7 1.16

!..'

!::.l

OU C:.

174

167 6

155

~

103 00

lOl

lO s

11

TAJ!t.f;

4

l l

l3

12 l2 lll

117 U7

u U7

u ll

.ll3

3

103

102

111

121

·l

12

12

€17

6

7

7

3

62

9J

102

10

10

ll.l

111

.9

108

10

l 80

as 9

g

90

0

u

2 l

l50

19

t9 00

213

l

4

_2«;

eet• I'

0

l

riod

l

19 6-1975

1951-197'5

1956-1975

1.961-1975

1966-1975

1971-1975

T LE 2

vera ·e a a s of R turn Yi ded by oldin0 ri ul u 1 nd _ 946-1975

Years nd o 1

2 3

percent

30 3, 25

25 73

~o ,4 .• 01

15 3.8

10 3 52

5 6.13

ud ad . ro -

ments

4

2.84

09

.3 42

3.37

.3.

6 0

TA LE 3

e res ion sults e at ·· OCP l.. n a.lu s and et Fa Incom erag s or 1936- 9 O, 1 51-19 3. 196 -1963, d 1972 1975

Co ffici nt

Sa dard

a2 r or of

. eats a b b

1936-19· 0 833 899 838 (.059)

195 -1953 . 890 .952 952 (.045)

196 1963 .865 262 750 ( .. 046)

1972- 975* .790 l 283 .730 (.058)

ote: e o so 197 f rm r es a alues p,er acre re re0 ressed on he log f th l 72-1975 £ mi income . r c~e~

TABLt:: 4

F I exes - 1911-1922

Ind 0 - era e od C per act' Q

d - nd and build P. r 00 (J ~2l•~ 00)

9 6 8 74~9

1912 72 6: 76.9

1913 7L,5 7 ,.6

l.914 71.2 80 .. 2 C

19.15 7L5 19.6

1916 - 84 4 4.2

1917 129 .. 0 89.9

19·18 148.0 97.9

1919 157 6 106.0

1920 150~7 127.

1921, 88.4 119 4

1922 93 .. 8 105 .. 6

193 5 3

ourc_; -)