The Connection Between Cash Rents and Land Values
AbstractThe last few years have seen big increases in land values. Cash rents have also increased but perhaps at a slower rate than land values. This paper examines the ratio of land values to cash rents to determine if how cash rents have changed in relation to land value changes. This ratio is important because it helps indicate whether cash rents are a good way of controlling farmland relative to purchasing the land. Results indicate there may be a lag in cash rents before they match the level of land prices. However, this relationship does not always hold.
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Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama with number 120055.
Date of creation: 2012
Date of revision:
land values; leasing; cash rents; farmland; real estate; Agricultural Finance; Crop Production/Industries; Farm Management; Production Economics;
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- Du, Xiaodong & Hennessy, David A. & Edwards, William M., 2008.
"Determinants of Iowa Cropland Cash Rental Rates: Testing Ricardian Rent Theory,"
2008 Annual Meeting, July 27-29, 2008, Orlando, Florida
6355, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Xiaodong Du & David A. Hennessy & William M. Edwards, 2007. "Determinants of Iowa Cropland Cash Rental Rates: Testing Ricardian Rent Theory," Center for Agricultural and Rural Development (CARD) Publications 07-wp454, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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