A Spatial Simultaneous Growth Equilibrium Modeling of Agricultural Land Development in the Northeast United States

This study aims to understand the relationship between regional growth in population, employment, and per capita income, and agricultural land values and development in the Northeast United States. A system of spatial simultaneous equations is estimated using three-stage-least squares on county level data. Results indicate that regional growth positively influences agricultural land values and negatively affects the stock of agricultural lands. Farm performance and some farmland protection policies were not effective in preserving farmland. The study recommends that agricultural land protection policies could be better coordinated at a regional level and more effective if integrated within state economic development programs.