Farmland values and conservation activity in Manitoba

Abstract

This paper examines the effect that habitat conservation in the prairie pothole region of Manitoba has on neighbouring farmland values by using a revealed preference method—namely the hedonic model. Specifically, the paper explores how government conserved land and land conserved in fee simple interest and conservation easements by conservation agencies—MHHC, NCC, and DUC—affects the values of proximate farmland. The results indicate that the presence of conservation easements and fee simple interests reduce values of proximate farmland and that government protected land increases surrounding farmland values. This effect declines with increase in distance from the conserved parcel.