An economic analysis of changes in exclusive farm use regulations for homesteads in Oregon : a case study in Yamhill County Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/cn69m715q

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  • Criticisms to the new regulations created in 1994 governing dwellings in Exclusive Farmland Use zones (zones where agricultural activities are allowed outright) have triggered an overall scrutiny directed by the 70th Oregon Legislative Assembly. The objective of this study was to examine the influence of the new regulations on the value of farmland in the Willamette Valley with existing homesteads. A hedonic price analysis of farmland sales in Yamhill County, which is located in the western portion of the Willamette Valley, was performed to reveal the influence of the new regulations. Estimation includes a test of functional form, examination of multicollinearity problem, a test of heteroscedasticity, and a test for the significance of structural difference between farmland markets with and without existing homesteads. Value of Yamhill County farmland with existing homesteads was shown to have been influenced by the new regulations. Specifically, during the transition years (1994-1997) when people didn't feel much pressure from the control over new dwelling construction, significant value increase due to the new regulations was not displayed. However, in 1998 when the implementation of the new regulations became less ambiguous, higher demand for farmland with existing homesteads has resulted in significant increase of the market price. The price increase dropped in 1999, though, probably because of the tighter control over replacement dwellings in Exclusive Farm Use zones.
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