Torell, L. Allen

April, 2007

Why Grazing Permits Have Economic Value

By: Rimbey, Neil R.; Torell, L. Allen; Tanaka, John A.
Grazing permit value supposedly arises as a cost advantage for permit holders. Yet, ranches are overpriced relative to income earning potential. Hedonic models for New Mexico and the Great Basin were used to evaluate permit value. We found less than 16% of the marginal value of grazing permits in New Mexico can be attributed to livestock production, and for Great Basin ranches, estimates indicate none of the value can be assigned to livestock production. Deeded and public land acreages make the ranch bigger and it is the acreage, not the cattle grazing it, that adds the most to ranchland value.
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December, 2005

Income Earning Potential versus Consumptive Amenities in Determining Ranchland Values

By: Torell, L. Allen; Rimbey, Neil R.; Ramirez, Octavio A.; McCollum, Daniel W.
The relative importance of income earning potential versus consumptive values in setting ranchland prices is examined using a truncated hedonic model. The market value of New Mexico ranches is related to annual income earning potential and other ranch characteristics including ranch size, location, elevation, terrain, and the amount of deeded, public, and state trust land on the ranch. We found ranch income to be a statistically important determinant of land value, but yet a relatively small percentage of ranch value was explained by income earnings. Ranch location, scenic view, and the desirable lifestyle influenced ranch value more than ranch income.
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July, 1994

MODELING NONNEGATIVITY VIA TRUNCATED LOGISTIC AND NORMAL DISTRIBUTIONS: AN APPLICATION TO RANCH LAND PRICE ANALYSIS

By: Xu, Feng; Mittelhammer, Ronald C.; Torell, L. Allen
This study presents an empirical method of modeling the nonnegativity of dependent variables using truncated logistic and normal disturbance distributions. The method is applied in estimating a ranch land hedonic price function. Results show that the degree of truncation is significant.
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