Abstract
The objective of this study is to determine the impact of farm credit subsidies on the value of farmland in Canada. The price‐components model based on the capitalization principle is developed and estimated using the pooled data from four selected provinces (Quebec, New Brunswick, Manitoba and Saskatchewan) from 1972 to 1991. The results show that increases (decreases) in interest subsidies are expected to increase (decrease) farmland and building values. However, the short‐term impact is estimated to be small. The regional analysis shows that the abolition of interest subsidies across the country is likely to have a relatively higher impact on land and building values in Quebec than in the prairie provinces.
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Schedule a callMore From: Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie
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