Current concern about the nonfarm development of prime agricultural land is related to land settlement patterns in which urban development and prime farmland coincide. Historical development and location theory, along with recent research, indicate that the Standard Metropolitan Statistical Areas (SMSAs) in the United States contain a disproportionate share of the nation's prime land. A detailed analysis of one SMSA with uneven topography and limited quantities of prime land presents convincing evidence that development within the SMSA tends to occur on the prime lands. High estimated development costs for second-best sites and low capitalized land values in farm use are likely explanations.
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