Factors Infuencing the Value of Cotton Land in the Southern High Plains of Texas

Crop production in the Southern High Plains of Texas has been dominated by cotton since acreage controls were abolished in the early 1970s and land values in the region are affected by the economic health of the cotton industry. A multiple regression analysis of the factors affecting values of individual land parcels in a seven-county, cotton-dominated portion of the Southern High Plains is presented. Returns from cotton production were found to have significant effect on land values during the 1974-79 study period. The effect on land prices of cotton prices and yields along with other economic variables, such as interest rates, parcel size, and distance from markets, were analyzed and are discussed. The results indicate that non-farm influences had a larger impact on farm land values than did farm production related variables during the period of the study.