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The 1996 Fair Act: Measuring The Impacts On Land Leasing

Author

Listed:
  • Parsch, Lucas D.
  • Bierlen, Ralph W.
  • Ahrendsen, Bruce L.
  • Dixon, Bruce L.

Abstract

Major innovations of the 1996 FAIR Act are PFC payments and almost complete planting flexibility. Because payments are attached to the land and not production, landlords are thought to capture most of the PFC payments. With the use of a November 1997 operator survey of cropland leasing arrangements in the Mississippi Delta of Arkansas, the current study investigates changes in crop mixes on leased land, operator attitudes concerning the operator/landlord sharing of FAIR Act benefits, and changes in leasing arrangements as a results of the FAIR Act. Although a number of operators agree that landlords disproportionately benefit from the FAIR Act, about three-quarters felt that there was not change or had no opinion. Similarly, we find little evidence that the arrangements of existing leases changed as a result of the FAIR Act. However, a number of operators report that leases were either terminated or added as a result of the FAIR Act.

Suggested Citation

  • Parsch, Lucas D. & Bierlen, Ralph W. & Ahrendsen, Bruce L. & Dixon, Bruce L., 1998. "The 1996 Fair Act: Measuring The Impacts On Land Leasing," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20892, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea98:20892
    DOI: 10.22004/ag.econ.20892
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    Cited by:

    1. Qiu, Feng & Goodwin, Barry K. & Gervais, Jean-Philippe, 2011. "An Empirical Investigation of the Linkages between Government Payments and Farmland Leasing Arrangements," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-16.

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