Analysis of the effects of above and below ground commodities on land value
Abstract
This study is intended to determine what impact the price of above and below ground commodities have on the value of land. In this study, I gathered quarterly data ranging from Q1 2000 - Q4 2016 and performed a linear regression on three different types of land with five different commodities serving as independent variables. The types of land I analyzed were dryland crop land, irrigated crop land, and ranchland. The five commodities used in this analysis are corn, wheat, sorghum, cattle, and oil. I achieved statistically significant results for corn, cattle, and oil. Each of these had a positive impact on one or more of the three types of land studied. The hypothesis of this study was that each commodity tested would positively impact the value of land, meaning that if the price of a commodity increased then the value of land would also increase. The statistically significant results supported this hypothesis.