The impact of confined animal feeding operations on agricultural land values in Kansas

Abstract

According to the United States Department of Agriculture’s Economic Research Service (USDA ERS, 2018), land comprises greater than 80 percent of the assets in the farm sector. Because land makes up such a large majority of assets in the farm sector, changes in the value of agricultural land has a significant impact on all who have a stake in the farm sector. Many previous studies have attempted to explain the variation in farmland values, but none have considered the possibility that confined animal feeding facilities (CAFOs) with a certain proximity of an agricultural land parcel may have an effect on the value of the land. Using agricultural land parcel sales data from the Kansas Department of Revenue Division of Property Valuation between the years of 2011 and 2017 and CAFO data provided by the Kansas Department of Agriculture, this study attempts to determine if a meaningful relationship exists between the sales price of Kansas agricultural parcels and the number of CAFOs within a given distance. This study found a positive relationship between the price per acre of agricultural landsales and CAFOs within 25 miles of the parcel sale on average between the years of 2011 and 2017, and a negative relationship between the sales price per acre of agricultural land and the number of CAFOs between 25 miles and 50 miles of the parcel sale.