Environmental Change and Land Markets: The Capitalization of Woody Encroachment into Agricultural Land Values

Abstract

Woody encroachment is a pressing land management challenge in grassland systems, impacting forage production, biodiversity, and ecosystem services. This study combines surveys of landowners and agricultural stakeholders with a hedonic price analysis of agricultural land sales and satellite-derived woody cover in Kansas to assess the economic implications of woody encroachment. Survey results indicate that high control costs, labor constraints, and difficulties prioritizing treatment areas are leading challenges to controlling woody encroachment. We find that participation in training and financial assistance programs is low, largely due to limited awareness, uncertainty about eligibility, and program complexity. Hedonic price model results show that increases in woody cover are associated with higher agricultural land values, with a one-percentage-point increase corresponding to an increase of $9–$27 per acre. These findings underscore the need for policies that lower control costs, clarify eligibility, and simplify participation.