The Influence of Supply Management on Farmland Values in Ontario.

Supply management programs for Canada's dairy and poultry sectors are intended to reduce price volatility and provide fair returns for producers. However, the reduced risk and higher returns for these producers may contribute to higher farmland values. This paper estimates the impact of supply management on farmland values in the Canadian province of Ontario using a hedonic approach based on over 25,000 farmland sales. The results indicate that farmland values have been positively impacted by supply‐managed livestock density. In addition, a recent policy change ‐ a cap on the price of dairy quota ‐ is found to further contribute to increased farmland values. [ABSTRACT FROM AUTHOR]