The hidden costs of relocating sand and gravel mines

Mining of construction aggregate is often unwelcome near communities because of its disamenities or because it can destroy prime farmland and displace other desirable land uses. Such conflicts have led to prohibitions against mining near cities or on high-value farmland, causing these operations to be relocated to more distant locations. The cost of this relocation may go unnoticed if they are indirect, diffused and rise gradually over time, but they may be significant due to the high transportation cost of moving these materials long distances.This study evaluates the economic cost of a proposed ban on new aggregate mines on high-value farmland in Oregon, USA. The analysis here finds that the cumulative cost would be $40,000 per acre of “saved farmland,” compared to the current market value of $2000 per acre. Moreover, the policy would “save” less than 1% of high-value farmland over the next 45 years.