Does Climatic Variability Influence Agricultural Land Prices under Differing Uses? The Texas High Plains Case

Abstract

The Texas High Plains faces projections of increasing temperature and declining precipitation in the future on account of its semi-arid climate. This research evaluated the impact of climatic variability on agricultural land prices under dif ferent land uses in the Texas High Plains, employing the Ricardian approach of land climate pricing over a study period of 1991-2011. The results indicate that climatic variability had a greater impact on irrigated land prices as compared to dryland and ranchland. This study could be instrumental in predictive market analyses of rural land values in semi-arid economies which are vulnerable to future climate change.