Does Soil Health Impact Farmland Prices?
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Since soil health influences farmland workability, one could expect it to influence land value. In this study, we explored the perceptions of farmland owners and renters regarding the value of soil health when purchasing or renting farmland. This was achieved through a survey and follow-up interviews. We found that while survey respondents are theoretically willing to pay over a 10% premium for farmland with excellent soil health, follow-up interviews revealed that farmland location, perception of soil health, the buyer's buying motivation (e.g., farming revenue, potential development value or pure financial speculation) and the neighboring farmer’s financial situation might be the ultimate price determinants. Additionally, the lack of publicly available soil health data for sold farmland parcels complicates price comparisons with land of poor soil health. Given the importance of soil health for achieving long-term food security, buffering climate change, and increasing biodiversity goals, we end by exploring policy solutions incentivizing farmers to build soil health, outlining additional research areas, and ways for farmland owners to promote their soil health when selling farmland.