1. Alabama Land Values Over Time The following slides come from Professor Walt Prevatt of Auburn University. They show the changes in Alabama land values over time, in comparison to the region and to the country.

2. Farm Real Estate Values, Alabama, 1950-2003

3. 1 Alabama Farm Real Estate Values were deflated using the Gross Domestic Product Deflator, 1950=100.

4. Annual Percent Change In Farm Real Estate Values, Alabama, 1950-2003

5. Farm Real Estate Values, Alabama & U.S., 1970-2003

6. Population Determines Rural Land Value The following slides, also from Dr. Prevatt of Auburn, show what influences the value of agricultural land. The “r 2 ” indicates how strongly a factor influences land value. The first two slides show that cotton prices and calf prices have almost no influence on land value. Productivity is not key. The third slide shows that timber value accounts for about 35% of land value. The fourth slide shows that population accounts for about 61% of land value (96 – 35 = 61). Population has influence because of the demand for housing and other development. Land can be held for speculation because of the low tax.

7. Econometric Analysis Of Value Cropland Value Cropland Value = f ( Alabama Cotton Prices ) Cropland Value = 1,362 - 525 CP R 2 = 0.0693

8. Econometric Analysis Of Value Pastureland Value Pastureland Value = f ( Alabama Calf Prices ) Pastureland Value = 937 + 0.5019 CP R 2 = 0.0009

9. Econometric Analysis Of Value Timberland Value Timberland Value = f ( Alabama Timber Prices ) Timberland Value = 9.2193 + 30.3644 PP R 2 = 0.3459

10. Econometric Analysis Of Value Farm Real Estate Value (FREV) FREV = f ( Forestry Receipts & Population) FREV = -1234 + 2.85 FR + 39.01 POP R 2 = 0.9617