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- Title
Compensated Short-Term Conservation Restrictions May Reduce Sale Prices.
- Authors
Taff, Steven J.; Weisberg, Sanford
- Abstract
Both federal income tax law and local property tax assessment practice assume that, while permanent conservation restrictions clearly reduce property values, short-term restrictions do not. An analysis of recent sales of Minnesota agricultural land with short-term, conservation Reserve Program (CRP) cropping rights restrictions does not support this logic. Restrictions were negatively and significantly associated with per-acre sale prices under different structural forms, with and without matched data samples. This study documents that, on average, a CRP contract covering half the entire parcel is associated with an 8%-16% price reduction.
- Subjects
UNITED States; INCOME tax laws; PROPERTY tax laws; VALUATION of real property; SALES; LAND use
- Publication
Appraisal Journal, 2007, Vol 75, Issue 1, p45
- ISSN
0003-7087
- Publication type
Article