Original Source

Hog Barns and Neighboring House Prices: Anticipation and Post-Establishment Impacts

American Journal of Agricultural Economics

Volume: 103: 1099-1121

25 FEB 2021

Lawley, C.

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Yes

From the source: "The Manitoba Livestock Manure ManagementInitiative supported this researchwith funding fromAgriculture and Agri-food Canada Growing Forward 2."

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Summary

The study analyzed the impact of pig agriculture and anticipation of pig agriculture on house prices in Manitoba, Canada. Variables such as square footage, number of stories, date of construction, etc. were measured in conjunction with distance to large-scale pig agricultural sites. The study found that houses within a two kilometer (km) radius of a pig agricultural site sold for roughly 6% less relative to similar houses located 2-5 km away. A quasi-myopic analysis (the method used to model individual consumer decisions based on expectations) revealed that a three year anticipation period of a pig agricultural site decreases house price by an average of 6.2%, while the establishment of the site decreased price by 8%. A limitation is the potential that pig-agriculturists systematically locate near houses declining in value, although the author argues that this scenario is unlikely in this case.The article is robust because their findings are consistent with prior research that has documented the negative effects of hog barns on nearby property values. The findings of this study have important implications for policymakers, agriculturalists, and homeowners in areas with intensive pig agriculture operations. The study highlights the need for proactive measures to mitigate the negative impact of pig agricultural sites on residential property values.

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