Choice among leasing contracts in farm real estate

Sotomayor, Narda L.; Ellinger, Paul N.; Barry, Peter J.

doi:10.1108/00214700080001111

Cited by 17 publications

(9 citation statements)

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“…Lease market failures (Sotomayer et al, 2000;Allen and Lueck, 2002) do not allow landowners to fully benefit from land lease. According to research by Breustedt and Habermann (2011), different location of parcels distorts the as-sumption on homogeneity of a good, since only farmers living sufficiently close to the parcel will be able to compete for its lease.…”

Section: Literature Reviewmentioning

confidence: 99%

Czynniki Wartości Ziemi Rolnej W Kontekście Zróżnicowanych Funkcji Obszarów Wiejskich W Polsce

Czyżewski¹,

Trojanek²

2016

Zagadnienia Ekonomiki Rolnej

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According to many researches, decoupled CAP subsidies capitalised on land prices. Most studies on land prices carried out in Europe relate to the sPs system and marginal changes in land values are noted as a result of the subsidising of agriculture. in the saPs system, used in the new eU-12 Member states, these issues have not been sufficiently investigated. an attempt is made to fill these gaps by studying the drivers of land values in a leading agricultural region of Poland based on a sample of 653 transactions from 2010-2013. The aim is to establish what land use values, amenities and payments for public goods contribute to land values in the saPs system. The hypothesis is proposed that the key factors for land value are location-specific factors identified according to the economic functions of a given area. Thus, four log-linear models of hedonic regression are estimated (using Gls) for different types of rural areas. The models employ both parcel-level attributes and agricultural policy variables. Results include the observation that single area payments contribute now to land value mainly in the peripheral areas and payments for public goods under saPs decapitalize the value of land, because they do not compensate for the opportunity costs related to alternative ways of deriving rent from the land.

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Section: Literature Reviewmentioning

confidence: 99%

Czynniki Wartości Ziemi Rolnej W Kontekście Zróżnicowanych Funkcji Obszarów Wiejskich W Polsce

Czyżewski¹,

Trojanek²

2016

Zagadnienia Ekonomiki Rolnej

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“…In practice, modelling of lease contracts is far more complicated than what has already been presented. Authors dealing with the issue are faced with the challenges of precise differentiation between the cases of certainty, risk and uncertainty, and formulation of expectations of the parties and converting uncertainty into certainty equivalent related thereto (Barry et al, 2000;Besly et al, 2016;Bryan, Deaton and Weersink, 2015;Ito, Bao and Ni, 2016;Qui, Goodwin and Gervais, 2011;Sotomayor, Ellinger and Barry, 2000). Another problem is the selection of the utility functions and methods of their optimisation.…”

Section: (349) 2016mentioning

confidence: 99%

Wybrane Problemy Wyceny Wartości Ziemi Rolniczej I Ustalania Czynszów Za Jej Dzierżawę

Kulawik

2016

Zagadnienia Ekonomiki Rolnej

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Farmland is a specific economic good of almost fundamental importance for the current societies and their development and prosperity perspectives. It underlies the traditional agricultural activity and this process will continue in the foreseeable future, but in the conditions of incessantly growing number of people on Earth, most of which still experiencing various quantitative and qualitative food shortages. Their basic needs will be satisfied in the conditions of progressing climate change, water problems and shrinking land acreage suitable for agricultural use. The above circumstances highlight the second aspect of farmland, i.e. its role as the source of diverse ecosystem and agri-environmental services provision. The fact that land meets many functions at the same time poses a serious challenge for land valuation. Precision in this field largely predetermines the amount of rents for the factor of production. In this context the key aim of the paper is to present the evolution of formal concepts and empirical models used to determine farmland value and rents for the possibility to benefit from its use.

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“…On the other hand, some agricultural economists have noted the growth in cash leasing (e.g. Sotomayor et al ., ; Paulson et al ., ), but they have not connected this growth with conservation.…”

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confidence: 99%

Conservation Practices and the Growth of US Cash Rent Leases

Allen¹,

Borchers²

2016

J Agricultural Economics

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Over the past 20 years the ratio of cash rent to cropshare land leases across the US has more than doubled. We test different theories that might explain this, and conclude that the shift is mostly the result of revolutionary changes in cultivation practices. The switch from conventional to conservation tillage brought about by changes in herbicide technologies, genetically modified seeds, increased fuel costs, and knowledge of the benefits of soil micro‐organisms, has reduced a tenant‐farmer's ability to exploit a landowner's soil. This removes a major incentive to cropshare and makes cash renting more attractive. Using USDA field‐level data from across the US, we find strong support for this hypothesis, and some evidence that increased corporate structure also influences cash renting. Alternatively, we cannot find evidence that changes in risk, risk‐aversion or insurance coverage explain the growth in cash renting.

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Choice among leasing contracts in farm real estate

Cited by 17 publications

References 0 publications

Czynniki Wartości Ziemi Rolnej W Kontekście Zróżnicowanych Funkcji Obszarów Wiejskich W Polsce

Czynniki Wartości Ziemi Rolnej W Kontekście Zróżnicowanych Funkcji Obszarów Wiejskich W Polsce

Wybrane Problemy Wyceny Wartości Ziemi Rolniczej I Ustalania Czynszów Za Jej Dzierżawę

Conservation Practices and the Growth of US Cash Rent Leases

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