Concern over the apparent disparity between the farm use value
and current market value of property in agricultural areas continues
to remain a source of concern in many areas. This concern has
intensified in recent years, particularly in those agricultural areas
situated near urban centers and recreational areas.
The main thrust of the study was directed toward determining the
relationship between net real estate income per acre and sale price
pier acres of properties in selected agricultural areas of Oregon.
Three areas, ostensibly called agricultural areas, were selected for
analysis. The areas, as classified, included a basic agricultural
production area (dry land grain area in northcentral Oregon), an urban-recreation
influenced area (Douglas County in southwestern Oregon
bordered by the Pacific Ocean on the west and the Umpqua National
Forest on the east) and an urban influenced area (Marion County in the
populous and productive Willamette Valley in northwestern Oregon).
In addition to determining the influence of net real estate income
on property prices, the influence of other property characteristics on
property prices was analyzed in each area. The other property
characteristics included: year of sale, number of acres in sale,
assessed value of buildings per acre, miles to nearest paved road,
and miles to nearest town of at least 1,000 population.
Simple and multiple linear regression models were used to
analyze the influence of particular property characteristics on sale
price per acre. The same six-variable model was used in each area
to test whether partial regression coefficient values on corresponding
variables differed significantly among areas. Overlapping of 95 percent
confidence intervals around corresponding partial regression
coefficient values among areas was observed for all independent
variables except net real estate income per acre. The income
variable was an important determinant of sale price per acre only
for grain area and Douglas County sales. However, the partial
regression coefficient value of 49.71 in urban-recreation influenced
Douglas County implies an approximate 2.0 percent capitalization
rate compared to a coefficient value of 17.11 and a 5.8 percent
implied capitalization rate in the grain area.
Year of sale was an important influence on sale price per acre in
areas influenced more strongly by nonagricultural influences, i.e.,
Douglas and Marion Counties, as evidenced both by the level of significance
of the coefficient value and the value of the coefficient in each
of these areas. The annual rate of property price appreciation at the
mean was 14.3 percent in urban-recreation influenced Douglas County
and 12.1 percent in urban influenced Marion County. While not significantly
different from zero, the rate of price change was slightly
negative in the grain area.
Conclusions from the study were (1) that there is a significant
difference in the influence of net real estate income and other property
characteristics on prices of properties among selected agricultural
areas of Oregon, (2) that the nature and degree of relationship between
prices oi property sales analyzed and property characteristics of these
sales varied considerably within each agricultural area selected for
analysis, but especially in the urban-recreation and urban influenced
areas, and (3) that in spite of relatively low mean rates of return in all
three areas studied, a disparity between the farm use value and current
market value of land was found to exist only in urban-recreation
influenced Douglas County.
Implication of these results are that variously influenced agricultural
areas do exist, and that motives for and sources of satisfaction
from ownership of property in agricultural areas vary within and among areas. / Graduation date: 1972
| Identifer | oai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/25973 |
| Date | 09 August 1971 |
| Creators | Crowley, William D. |
| Contributors | Blanch, Grant E. |
| Source Sets | Oregon State University |
| Language | en_US |
| Detected Language | English |
| Type | Thesis/Dissertation |
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