Research Paper: Animal Operations and Residential Property Values
Animal operations are more concentrated than ever before with the facilities handling much larger numbers than traditional farms. This research paper was for the analysis of attempting to find a relation between animal feeding and processing operations and the impact this has on the value of the houses in these communities. It is found that a larger concentration of animals impacts the quality of surrounding air and water. These facilities also impact the economic conditions of communities in which they are located. This article formulated together current literature on the topic, which will be useful to appraisers who have to conduct valuations where these facilities are located.
This paper was put together since research capabilities have been expanded to get more accurate results; the first research on the topic analyzed 300 sales transactions, followed by another one at 8,090 sales transactions. Also, GIS by local governments has increased which allow researchers to be able to conduct more thorough data. Animal operations (AO) are broadly defined as facilities where animals are raised or brought for slaughter. The takeaway is that AO impact on valuations is related to proximity and size; many other internal factors are also taken into consideration. The study confirms valuations impact from an earlier study at a range of 3.1% to 26% depending on multiple factors. This is crucial for appraisals to be aware of when there doing their due diligence for an appraisal. I also believe it is vital to homeowners to be aware when moving into these communities. If I’m ever working with a buyer in one of the communities, as an agent, I think I would also advise my client of the implication I learned from this study.
