FARM PROGRAMS AND AGRICULTURAL LAND VALUES: THE CASE OF SOUTHERN AGRICULTURE

Relative estimates of the proportion of agricultural land values generated by farm program payments and farm returns in the southern region are examined, using state-level data for the period 1940 to 2004. Results indicate the contribution of farm program payments to agricultural land values in the southern region has increased during the last three farm bill periods to 65 percent, compared to 22 percent in the other regions.