Determinants of Farmland Prices in Different Regulated Markets - A Comparison between Germany and Minnesota This paper discusses determinants of farmland prices in Germany and Minnesota. A hedonic price model was used to estimate the implicit value of the land, agricultural structure, and regional economic attributes on farm land prices. The analysis found farmland prices are influenced by agricultural production attributes as well as factors that influence the agricultural and non-agricultural demand for land. The results suggest that the potential for converting agricultural land to a higher-value, non-agricultural use creates a price expectation that is capitalised into prices. Environmental management policy and manure management regulation influence farmland prices in Germany. The assumption that farmland prices in large, low density regions are not influenced by non-agricultural factors was not supported by the empirical results.
