CORRELATION OF AGRICULTURAL LAND VALUE FACTORS IN MONTANA

TWO HUNDRED AND EIGHTY MONTANA RURAL FARMS AND RANCHES (GRAZING LAND) ARE ANALYZED. THE RELATIONSHIP BETWEEN SALES PRICE PER ACRE AND A STANDARDIZED PRODUCTIVITY RATING FOR BOTH FARMS AND RANCHES IS TESTED. RANCH PRODUCTIVITY CONSIDERS LIVESTOCK GRAZING REQUIREMENTS, MEASURED IN ACRES PER ANIMAL, WHILE FARM PRODUCTIVITY IS MEASURED IN FEED UNITS PER ACRE. THUS A COMMON UNIT OF COMPARISON IS USED FOR BOTH FARM AND RANCH PRODUCTIVITY. SECONDLY, THE RELATIONSHIP BETWEEN SALES PRICE PER ACRE, AND STANDARDIZED PRODUCTIVITY, DISTANCE TO NEAREST OILED ROAD, AND DISTANCE TO NEAREST TOWN IS TESTED. ADJUSTMENTS ARE MADE FOR TIME, BUILDING VALUE, AND ACQUISITION FOR EXPANSION. THE USE OF COMPUTER DATA PROCESSING AND THE AVAILABILITY OF PREPARED PROGRAMS FACILITATED RESEARCH. THE RESEARCHER FOUND THAT A RELATIONSHIP DOES EXIST BETWEEN RANCH AND FARM PRODUCTIVITY AND LAND VALUE. TESTING THE RELATIONSHIP WITH PRODUCTIVITY ALONE RESULTED IN THE EXPLANATION OF FROM 30 TO 60 PERCENT OF THE VARIATION IN SALE PRICE. WHEN SUCH ADDITIONAL FACTORS AS DATE OF SALE, TOTAL ACRES, DISTANCE TO OILED ROADS WERE CONSIDERED, FROM 54 TO 86 PERCENT VARIATION WAS EXPLAINED. THE HIGHEST DEGREE OF CORRELATION WAS FOUND WHEN LIVESTOCK RANCHES WERE DISTINGUISHED FROM IRRIGATED AND DRY WHEAT FARMS. AN EXAMPLE OF THE ACCURACY OF LAND VALUE ESTIMATES THE AUTHOR ACHIEVED WAS DEMONSTRATED IN A GLENDIVE HIGHWAY TAKING INVOLVING 15 IRRIGATED FARMS. FOR THESE PROPERTIES, ESTIMATED SALES PRICE PER ACRE RANGED BETWEEN 2 AND 24 PERCENT OF THE APPRAISED VALUES. THE RESEARCHERS RECOMMEND THE USE OF A LARGER SAMPLE AND NON-LINEAR MULTIPLE REGRESSION ANALYSIS TO ACHIEVE EVEN MORE ACCURATE ESTIMATES OF AGRICULTURAL LAND VALUE. /BPR/

  • Supplemental Notes:
    • Hpr, Bpr-hpR-1/5/, STATE-R-22
  • Corporate Authors:

    Montana State University, Bozeman

    Bozeman, MT  USA  59717

    Montana State Highway Commission

    ,    

    Bureau of Public Roads /US

    400 7th Street, SW
    Washington, DC  USA  20590
  • Authors:
    • Remer, R J
  • Publication Date: 1967-10

Subject/Index Terms

Filing Info

  • Accession Number: 00200805
  • Record Type: Publication
  • Source Agency: Bureau of Public Roads /US
  • Files: TRIS
  • Created Date: Dec 21 1994 12:00AM