Because land Is a crucial factor of production in the U.S. agricultural sector, land prices have an impact on a wide range of participants in the world economy. Land prices have a direct impact on farmers' abilities to begin, operate, and expand their enterprises. Consumers worldwide are affected indirectly by land values because the cost of land services will partly determine the supply of farm commodities. Taxing authorities are directly affected by land value changes because property values are used as the basis for property tax assessment.
Harris, Duane G., "Some Simple Analytics of Target Prices and Land Values" (1976). Economic Staff Paper Series. 140.