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Accumulation And Rental Behavior In The Market For Farmland

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  • Chambers, Robert G.
  • Phipps, Tim T.

Abstract

A farmer's choices of tenure and farm size result from a complex interplay of economic factors technology, entrepreneurial ability, and personal preferences. This paper examines the qualitative effects of these factors on tenure and farm size in a dynamic optimization framework. One implication of the theoretical model is that changes in technology should cause systematic differences to be observed between rates of return on farmland and rates earned on comparable long-term assets. This implication is supported by an empirical test.

Suggested Citation

  • Chambers, Robert G. & Phipps, Tim T., 1988. "Accumulation And Rental Behavior In The Market For Farmland," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(2), pages 1-13, December.
    • Handle: RePEc:ags:wjagec:32120
    DOI: 10.22004/ag.econ.32120
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    References listed on IDEAS

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    1. Philip Garcia & Steven T. Sonka & Man Sik Yoo, 1982. "Farm Size, Tenure, and Economic Efficiency in a Sample of Illinois Grain Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 119-123.
    2. Currie,J. M., 1981. "The Economic Theory of Agricultural Land Tenure," Cambridge Books, Cambridge University Press, number 9780521236348.
    3. Epstein, Larry G., 1982. "Comparative dynamics in the adjustment-cost model of the firm," Journal of Economic Theory, Elsevier, vol. 27(1), pages 77-100, June.
    4. Jeffrey Apland & Robert N. Barnes & Fred Justus, 1984. "The Farm Lease: An Analysis of Owner-Tenant and Landlord Preferences under Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 376-384.
    5. Raleigh Barlowe & John F. Timmons, 1950. "What Has Happened to the Agricultural Ladder?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 32(1), pages 30-47.
    6. Oscar R. Burt, 1986. "Econometric Modeling of the Capitalization Formula for Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 10-26.
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    Cited by:

    1. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(3), pages 1-31.
    2. Andersson, H., 1995. "Landlords and farmers: implications of disparities in bargaining power for tenancy in agriculture," Agricultural Economics, Blackwell, vol. 12(2), pages 151-162, August.
    3. Blank, Steven, 1991. "Affects of Farmland Cash Leasing Rates on crop Selections of owners and Tenants: A Portfolio Analysis," WAEA/ WFEA Conference Archive (1929-1995) 321474, Western Agricultural Economics Association.
    4. Perera, Jayantha R. & Outlaw, Joe L. & Knutson, Ronald D., 1996. "Minnesota-Wisconsin Milk Price Drives Cheese Price: Some Empirical Evidence," Research Reports 257900, Texas A&M University, Agricultural and Food Policy Center.

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    Keywords

    Land Economics/Use;

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