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Farmland Rental Values in GM Soybean Areas of Argentina: Do Contractual Arrangements Matter?

Author

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  • Johanna Choumert

    (EDI - Economic Development Initiatives - EDI)

  • Pascale Phelinas

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

We study the determinants of rental prices of farmland in the Argentinean Pampas. In particular, we examine the value of lease contract characteristics within a hedonic price framework, while controlling for other potential sources of variation. Using first-hand data for 255 parcels, our results indicate that both short-term contracts and contracts with sowing pools push rental prices upwards. We also find that soybean yields have a significant impact on land rental rates. These results suggest that if Argentina intends to protect the enormous natural advantage it has for agricultural production, it should consider strictly regulating land rental contracts.

Suggested Citation

  • Johanna Choumert & Pascale Phelinas, 2015. "Farmland Rental Values in GM Soybean Areas of Argentina: Do Contractual Arrangements Matter?," Working Papers halshs-01237771, HAL.
    • Handle: RePEc:hal:wpaper:halshs-01237771
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01237771
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    Cited by:

    1. Phélinas, Pascale & Choumert, Johanna, 2017. "Is GM Soybean Cultivation in Argentina Sustainable?," World Development, Elsevier, vol. 99(C), pages 452-462.
    2. Jimena Gonzalez-Ramirez & Poonam Arora & Guillermo Podesta, 2018. "Using Insights from Prospect Theory to Enhance Sustainable Decision Making by Agribusinesses in Argentina," Sustainability, MDPI, vol. 10(8), pages 1-15, August.

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    More about this item

    Keywords

    Argentina; Hedonic price; Lease; Contracts; Soybean;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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