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The Effect of Risk on the Rental Value of Agricultural Land

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  • Hall, Joyce A.
  • Brorsen, B. Wade

Abstract

A theoretical model determining the rental value of agricultural land under risk aversion is developed. Land rent is modeled as a function of expected output price, input price and risk. Cross sectional time series data for the Corn Belt states (1970-1986) are used assuming a corn-soybean rotation. Farm programs are included as contingent claims.

Suggested Citation

  • Hall, Joyce A. & Brorsen, B. Wade, 1988. "The Effect of Risk on the Rental Value of Agricultural Land," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270458, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea88:270458
    DOI: 10.22004/ag.econ.270458
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    Cited by:

    1. Katchova, Ani L. & Sherrick, Bruce J. & Barry, Peter J., 2002. "The Effects Of Risk On Farmland Values And Returns," 2002 Annual meeting, July 28-31, Long Beach, CA 19660, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Du Xiaodong & Hennessy David & Edwards William A., 2008. "Does a Rising Biofuels Tide Raise All Boats? A Study of Cash Rent Determinants for Iowa Farmland under Hay and Pasture," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 6(2), pages 1-25, December.
    3. Ifft, Jennifer & Cooper, Joseph C. & Kuethe, Todd H., 2012. "The Impact of Risk and Farm Program Design on Cash Rents," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124334, Agricultural and Applied Economics Association.
    4. Hall, Joyce A. & Brorsen, B. Wade, 1989. "The Policy Implications of Corn and Soybean·Supply Response to Risk," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270502, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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