Did the Federal Agriculture Improvement and Reform Act of 1996 Affect Farmland Values?

Abstract

Farmland values are affected by numerous factors, including farm policy, shifts in demand for agricultural output both foreign and domestic, monetary policy and urban pressure. In this study we use an information measure to examine whether the shift toward a more market-oriented policy in 1996 changed the relationship between farmland values and government payments. The results indicated that the shift in agricultural policy resulted in significant shift in this relationship.

Keywords

• agricultural policy
• entropy
• farmland value
• government payments