TY - JOUR
AU - Stokes, Jeffrey
AB - Agricultural conservation easements consist of deed restrictions that landowners voluntarily place on their farm real estate for any number of reasons including the permanent restriction of development. Purchase of Agricultural Conservation Easement (PACE) programs exist in many States and are used to ensure farm real estate is available for future agricultural use as well as a policy mechanism to control development. Much like the landowner’s development option, preservation is a real option exercised at the discretion of the landowner. An analytic contingent claims model is presented to value the landowner’s preservation option. An empirical analysis of the model indicates that the option to delay preservation can have significant value.
TI - The value of the option to preserve farm real estate
JF - Journal of Economics and Finance
DO - 10.1007/s12197-010-9138-7
DA - 2010-06-18
UR - https://www.deepdyve.com/lp/springer-journals/the-value-of-the-option-to-preserve-farm-real-estate-AFAPgTJCYC
SP - 162
EP - 175
VL - 36
IS - 1
DP - DeepDyve
ER -