IU Study Reveals Data on Rural Home Values
A new Indiana University study indicates regulated livestock operations, CAFO’s and CFO’s, can have a net positive influence on nearby residential property values in rural areas. The study was commissioned by the Indiana Soybean Alliance whose members count on the livestock and poultry industries as their number one soybean meal customers. For data analysis the Indiana Business Research Center used almost 8,000 real estate transactions in Hancock, Decatur and Shelby counties.
Interim Executive Director at ISA, Jane Ade Stevens told HAT the number one thing learned from the study was, “to make blanket statements that regulated livestock operations have negative impact on property values cannot be substantiated in those three counties. In fact, in some cases there was no impact or it was a positive impact. So to make those claims in your county may or may not be true.” Read More
So here is the scenario. A family moves to the country to get out of the city. They want to be next to farmers and ranchers on their acreage, and they normally pay a premium to do so. Then they get upset with the producer over some practice and claim their property value is declining. This seems to be a pretty common theme over the last several years. However, the numbers don’t agree with the assertion that property values drop when a livestock operation expands. This is some good information to put in your toolbox.