Economic and equity implications of land-use zoning in suburban agriculture

A cash-flow viability model is used to evaluate the impacts of land-use zoning on farm households in New Jersey. Findings suggest that zoning results in increased production expenses, lower efficiency and profitability, and the devaluation of land assets. Cash flow and economic viability are, thus, reduced. Impacts of zoning on farm incomes, off-farm incomes, revenues from land sales, indebtedness, and farm sizes were not statistically significant. The results suggest that the use of land-use zoning statutes to guarantee the existence of agriculture may not be equitable unless transferable development rights or other methods of compensating farmers for their losses are simultaneously implemented.