Abstract
PurposeCorn ethanol plants consume large amounts of corn and their location has the potential to alter local crop prices and surrounding agricultural land values. The purpose of this paper is to analyze the local economic impact of ethanol plant locations on farmland values.Design/methodology/approachThe relationship between ethanol plant location and agricultural land prices is examined using data obtained from the Agricultural Credit Survey administered by the Federal Reserve Bank of Kansas City.FindingsThe findings indicate that ethanol plant location has had an impact on land values. The portion of land price changes attributable to location is consistent with previous estimates of basis changes associated with ethanol plant location.Originality/valueThe paper finds that land markets appear to be rationally adjusting to the location of ethanol plants.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
