AGRICULTURAL LAND VALUES UNDER URBANIZING INFLUENCES

The research reported in this paper combines agricultural and urban-fr inge models, utilizes a combination of cross-sectional and time-series data from the Census of Agriculture and other sources, and estimates a single-equation model for West Virginia farmland prices. Urban influ ences on land prices are captured using a gravity model adapted from m arketing research. The results indicate that both farm income and urba n influences have been important factors affecting the value of the st ate's farmland The gravity model is a promising and parsimonious metho d for capturing urban influences in a single variable that combines si ze and distance.