FARMLAND VALUES AND URBANIZATION
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Estimates of the effect of urbanization on farmland values and eventually food prices are presented. These estimates, which reveal a strong positive relationship between urbanization and farmland values, are used to construct elasticities of farmland value related to population density for the 10 farm production regions in the 48 contiguous States. These elasticities are generally elastic; thus the author examines the issue of including a land charge in commodity cost of production budgets that could eventually be used as a basis for loan rates.