Impact of Confined Animal Feeding Operations on Agricultural Land Values

Previous studies have attempted to explain variations in farmland values, but few consider the effect of confined animal feeding facilities (CAFOs) on the value of agricultural land within a certain proximity. Using parcel-level transaction data and fixed-effect models with different specifications on the distance to CAFOs, this study finds a positive relationship between agricultural land prices and CAFOs located within various distances of the parcel sale. With a distance-band specification, the positive effect of CAFOs is more prominent for the 0- to 25-kilometer distance. We also find that the price rises as the nearest CAFO is located closer.