Agricultural Productive and Consumptive Use Components of Rural Land Values in Texas

Consumptive demand applies significant upward pressure on rural land values and plays an important role in determining farm and ranch structure in Texas. Using cross‐sectional land value data and regression analysis, various factors that affect rural land values in Texas are evaluated. Population density, proximity to major metropolitan centers, quality of deer hunting, and aesthetic differences across the state explain the majority of the differences in rural land values. On the average, only about 22 percent of the total market value of rural land in Texas can be statistically explained by its productive value.