Möchten Sie über diese Zeitschrift informiert bleiben? Klicken Sie bitte auf die Buttons, um unsere Alerts zu abonnieren.
Möchten Sie über diese Zeitschrift informiert bleiben? Klicken Sie bitte auf die Buttons, um unsere Alerts zu abonnieren.
Risk and return of heterogenous farmland locations and qualities
in International Food and Agribusiness Management ReviewFormer PhD student, Department of Agricultural Economics, Purdue University, 403 W. State Street, West Lafayette, IN 47907, USA.
Search for other papers by Ashraf Noumir in
Current site
Google Scholar
Search for other papers by Michael Langemeier in
Current site
Google Scholar
Using data on farmland values in Indiana and Iowa, this study examines the risk and return characteristics surrounding top, medium, and poor farmland qualities in different locations in these two states. We find that systematic risks of locations/qualities are very low (indistinguishable from 0). In terms of risk-adjusted return, our results show that Indiana farmland has more excess return and higher reward-to-risk ratios than Iowa. Also, adding the quality dimension to the geographic dimension in portfolio selection strategies improved the portfolio reward-to-risk ratio for Indiana but not for Iowa. Interestingly, we found that the average quality farmland has more weight in portfolios relative to top- and poor-quality farmland.
-
Baker, T.G., M.D. Boehlje and M.R. Langemeier. 2014. Farmland: is it currently priced as an attractive investment? American Journal of Agricultural Economics 96(5): 1321-1333
'Farmland: is it currently priced as an attractive investment? ' () 96 American Journal of Agricultural Economics : 1321 -1333.
-
Barry, P.J. 1980. Capital asset pricing and farm real estate. American Journal of Agricultural Economics 62(3): 549-553.
'Capital asset pricing and farm real estate ' () 62 American Journal of Agricultural Economics : 549 -553.
-
Bjornson, B. 1994. Asset pricing theory and the predictable variation in agricultural asset returns. American Journal of Agricultural Economics 76(3): 454-464.
'Asset pricing theory and the predictable variation in agricultural asset returns ' () 76 American Journal of Agricultural Economics : 454 -464.
-
Bjornson, B. and R. Innes 1992. Another look at returns to agricultural and nonagricultural assets. American Journal of Agricultural Economics 74(1): 109-119.
'Another look at returns to agricultural and nonagricultural assets ' () 74 American Journal of Agricultural Economics : 109 -119.
-
Burns, C., N. Key, S. Tulman, A. Borchers and J. Weber. 2018. Farmland values, landownership, and returns to farmland, 2000-2016. Economic Research Report 245. United States Department of Agriculture, Washington, DC, USA.
'Farmland values, landownership, and returns to farmland, 2000-2016', ().
-
Carson, N. and M. Langemeier. 2019. Relationship between cash rent and net return to Landin Indiana. Journal of ASFMRA: 126-131.
'Relationship between cash rent and net return to Landin Indiana ' () Journal of ASFMRA : 126 -131.
-
Chen, S., W.W. Wilson, R. Larsen and B. Dahl. 2015. Investing in agriculture as an asset class. Agribusiness 31(3): 353-371.
'Investing in agriculture as an asset class ' () 31 Agribusiness : 353 -371.
-
Ervin, E.D. and J.W. Mill. 1985. Agricultural land markets and soil erosion: policy relevance and conceptual issues. American Journal of Agricultural Economics 67(5): 938-956.
'Agricultural land markets and soil erosion: policy relevance and conceptual issues ' () 67 American Journal of Agricultural Economics : 938 -956.
-
Gardner, K. and R. Barrows. 1985. The impact of soil conservation investments on land prices. American Journal of Agricultural Economics 67: 943-947.
'The impact of soil conservation investments on land prices ' () 67 American Journal of Agricultural Economics : 943 -947.
-
Hardin, W.G. and P. Cheng. 2002. Farmland investment under conditions of certainty and uncertainty. The Journal of Real Estate Finance and Economics 25(1): 81-98.
'Farmland investment under conditions of certainty and uncertainty ' () 25 The Journal of Real Estate Finance and Economics : 81 -98.
-
Irwin, S.H., D.L. Forster and B.J. Sherrick. 1988. Returns to farm real estate revisited. American Journal of Agricultural Economics 70(3): 580-587.
'Returns to farm real estate revisited ' () 70 American Journal of Agricultural Economics : 580 -587.
-
Langemeier, M., T. Baker and M. Boehlje. 2016. Trends in land prices, cash rents, and price to rent ratios for Iowa, Illinois, and Indiana. Center for Commercial Agriculture, Perdue University, West Lafayette, IN, USA. Available at: https://ag.purdue.edu/commercialag/Pages/Resources/Farmland/Land-Prices/Trends-in-Land-Price-Cash-Rents-and-Price-to-Rent-Ratios-for-Iowa-Illinois-and-Indiana.aspx
-
Lins, D.A., B.J. Sherrick and A. Venigalla. 1992. Institutional portfolios: diversification through farmland investment. Real Estate Economics 20(4): 549-571.
'Institutional portfolios: diversification through farmland investment ' () 20 Real Estate Economics : 549 -571.
-
Ma, S. and S.M. Swinton. 2012. Hedonic valuation of farmland using sale prices versus appraised values. Land Economics 88(1): 1-15.
'Hedonic valuation of farmland using sale prices versus appraised values ' () 88 Land Economics : 1 -15.
-
Miranowski, J.A. and B.D. Hammes. 1984. Implicit prices of soil characteristics for farmland in Iowa. American Journal of Agricultural Economics 66(5): 745-749.
'Implicit prices of soil characteristics for farmland in Iowa ' () 66 American Journal of Agricultural Economics : 745 -749.
-
Nickerson, C., M. Morehart, T. Kuethe, J. Beckman, J. Ifft and R. Williams. 2012. Trends in U.S. farmland values and ownership. Economic Information Bulletin 291935. United States Department of Agriculture, Washington, DC, USA.
'Trends in U.S. farmland values and ownership', ().
-
Palmquist, R.B. and L.E. Danielson. 1989. A hedonic study of the effects of erosion control and drainage on farmland values. American Journal of Agricultural Economics 71(1): 55-62.
'A hedonic study of the effects of erosion control and drainage on farmland values ' () 71 American Journal of Agricultural Economics : 55 -62.
-
Sklenicka, P., K. Molnarova, K.C. Pixova and M.E. Salek. 2013. Factors affecting farmland prices in the Czech Republic. Land Use Policy 30(1): 130-136.
'Factors affecting farmland prices in the Czech Republic ' () 30 Land Use Policy : 130 -136.
-
Wan, Y., M.L. Clutter, B. Mei and J.P. Siry. 2015. Assessing the role of US timberland assets in a mixed portfolio under the mean-conditional value at risk framework. Forest Policy and Economics 50: 118-126.
'Assessing the role of US timberland assets in a mixed portfolio under the mean-conditional value at risk framework ' () 50 Forest Policy and Economics : 118 -126.
Supplementary Materials
| Insgesamt | Letzte 365 Tage | In den letzten 30 Tagen | |
|---|---|---|---|
| Aufrufe von Kurzbeschreibungen | 0 | 0 | 0 |
| Gesamttextansichten | 234 | 100 | 9 |
| PDF-Downloads | 208 | 89 | 9 |
Risk and return of heterogenous farmland locations and qualities
in International Food and Agribusiness Management ReviewFormer PhD student, Department of Agricultural Economics, Purdue University, 403 W. State Street, West Lafayette, IN 47907, USA.
Search for other papers by Ashraf Noumir in
Current site
Google Scholar
PubMed
Search for other papers by Michael Langemeier in
Current site
Google Scholar
PubMed
Using data on farmland values in Indiana and Iowa, this study examines the risk and return characteristics surrounding top, medium, and poor farmland qualities in different locations in these two states. We find that systematic risks of locations/qualities are very low (indistinguishable from 0). In terms of risk-adjusted return, our results show that Indiana farmland has more excess return and higher reward-to-risk ratios than Iowa. Also, adding the quality dimension to the geographic dimension in portfolio selection strategies improved the portfolio reward-to-risk ratio for Indiana but not for Iowa. Interestingly, we found that the average quality farmland has more weight in portfolios relative to top- and poor-quality farmland.
| Insgesamt | Letzte 365 Tage | In den letzten 30 Tagen | |
|---|---|---|---|
| Aufrufe von Kurzbeschreibungen | 0 | 0 | 0 |
| Gesamttextansichten | 234 | 100 | 9 |
| PDF-Downloads | 208 | 89 | 9 |
