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| Additional Evidence on the Homogeneity
of the Value of Government Grazing Leases and Changing Attributes for Ranch Values Author: Ronald W. Spahr and Mark A. Sunderman Start Page: 601 Abstract: Using Wyoming ranch
sales from 1979-1983 and 1989-1993, this study investigates how ranch value determining
attributes may have changed over this period. The 1979-1983 period is one of political
stability and rising prices. In constrast, the 1989-1993 period is one of political
uncertainty but stable prices. It is found, during 1989-1993, ranch prices were based more
on productivity; whereas, during the earlier period, prices were based more on speculative
potential. Also, it is found that government grazing leases were valued differently
between time periods, ecological regions, and types of leases. This suggests that the
current single-price grazing fee commonly used misprices many leases. Because of the
heterogeneity in the value of grazing leases, we recommend a variable-fee form of pricing
be adopted. |
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