Skip to main content Accessibility help
×
Home

Comparative Rents for Farmland and Timberland in a Subregion of the South

  • Ian W. Hardie (a1)

Abstract

This study compares equivalent annual rents for two alternative land uses in a region where farming and timber plantations coexist. The comparison is motivated by the possibility that rising timber prices may stimulate timber processors to compete for farmland. Prices, costs, and market rents are assumed to first follow existing trends and then to reach steady state values. Market rents are projected and capitalized for agriculture. Internal soil rents are capitalized for timber. The results show timber to have a comparative advantage on high fertility sites and suggest that timber might become a competitive land use at the intensive margin of the region's farmland base.

Copyright

References

Hide All
Adams, Darius M. and Haynes, R. W.The 1980 Softwood Timber Assessment Market Model: Structure, Projections and Policy Simulations.Forest Science Monograph 22, (Supplement to Forest Science, 26(3)), 64 p., 1980.
Burkhart, Harold E. “Site Index Curves from Stem Analysis Data.”Supplement to Industry-VPI Cooperative Yield Study Report No. 6, 1972.
Burkhart, H. E., Parker, R. C., Strub, M. R. and Oderwald, R. G. Yields of Old-Field Loblolly Pine Plantations, Virginia Poly. Institute and State College, Division Forest and Wildlife Resource Pub. FWS-3-72, Blacksburg, Virginia, 51 p., 1972.
Clark, C. W. Mathematical Bioeconomics: The Optimal Management of Renewable Resources, John Wiley and Sons, New York, 352 p., 1976.
Economic Research Service, U.S. Department of Agriculture. Farm Real Estate Market Developments: Outlook and Situation, various issues, Washington, D.C..
Faustmann, Martin. “Calculation of the Value Which Forest Land and Immature Stands Possess for Forestry.” (In Martin Faustmann and the Evolution of Cash Flow, trans. Linnard, W., Oxford: Commonwealth Forestry Institute.) Originally published in 1849.
Forest Service, U.S. Department of Agriculture. An Analysis of the Timber Situation in the United States: 1952-2030. (Review draft.) Washington, D.C, 541 p., 1980.
Gaffney, Mason M. Concept of Financial Maturity of Timber and Other Assets, N.C State University, Department of Agricultural Economics, Inf. Series 62, Raleigh, North Carolina, 105 p., 1957.
Hardie, I. W., Daberhow, J. N., and McConnell, K. E.A Soil Rent Model with Variable Rotation Lengths.Forest Science, 30(2):509521, 1984.
Hardie, I. W. Optimal Management Plans for Loblolly Pine Plantations in the Mid-Atlantic Region, M. P. 906, Maryland Agri. Exp. Station, College Park, Maryland, 108 p., 1977.
Haynes, Richard W. and Adams, D. M.Changing Perceptions of the U.S. Forest Sector: Implications for the RPA Timber Assessment.Amer. J. Agr. Econ., 65(5):10021009, 1983.
Heaps, T. and Neher, P. A.The Economics of Forestry When the Rate of Harvest is Constrained.J. Environ. Econ. and Mgt., 6:297319, 1979.
Hoffman, George and Gustafson, C.. “A New Methodological Approach for Estimating Agricultural Costs of Production.” ERS Staff Report AGES830513, National Economics Division, Economic Research Service, U.S. Department of Agriculture, 20 p., 1983.
McConnell, K. E., Daberhow, J. N., and Hardie, I. W.Planning Timber Production with Evolving Prices and Costs.Land Econ., 59:292299, 1983.
Parket, R. C. Private Communication, 1974.
Ricardo, David. The Principles of Political Economy and Taxation (chapter 2, “On Rent”), reprinted by Dent and Sons, Ltd., London, 1972. Originally published in 1821.
Samuelson, Paul A.Economics of Forestry in an Evolving Society.Econ. Inq. 14:466492, 1976.

Keywords

Comparative Rents for Farmland and Timberland in a Subregion of the South

  • Ian W. Hardie (a1)

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed