FAIR Act Implications for Land Values in the Corn Belt |
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| Authors: | Russell L Lamb & Jason Henderson |
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| Institution: | Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, NC,;Agricultural Economics Department, Purdue University, West Lafayette, IN |
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| Abstract: | In 1996 the federal government enacted the Federal Agriculture Improvement and Reform (FAIR) Act, which represented a sweeping change in public policy toward agriculture. This paper examines the impact of the FAIR legislation on farmland values across the U.S. Corn Belt. A representative farm framework is used to determine the impact of FAIR on farmland values. The analysis suggests that marginal production environments are likely to suffer most severely under FAIR, and that a prolonged period of weak commodity prices could engender sharp declines in farmland values. |
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