How Cropland Contract Type And Term Decisions Are Made: Evidence From An Arkansas Tenant Survey
This study examines land contract decision-making with the use of an eastern Arkansas data set. Estimated probit models used to test contract choice hypotheses support a credit constraint hypothesis, indicating that contract choice is based on: 1) the tenant's financial position and operating expense levels, 2) the size of the operation; 3) alternative uses of agricultural land; and 4) the supply of contracted land. Results indicate limited support for the agency problem hypothesis and reject the risk aversion and farmers managerial ability hypotheses. Regression equations used to select lease term hypotheses indicate that cash rent levels are sensitive to land quality, supply of contract acres, irrigation, and crop produced. Tenant shares of the crop and variable costs are less sensitive to land quality than cash rents. Other variables that influence tenant shares of the crop and variable costs include tenant/landlord social capital, the supply of contracted acres, and crop selection.
Volume (Year): 02 (1999)
Issue (Month): 01 ()
|Contact details of provider:|| Postal: 1010 Vermont Avenue, Suite 201, Washington, DC 20005, USA|
Phone: 1 (202) 429-1610
Web page: http://www.ifama.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Allen, Douglas & Lueck, Dean, 1992. "Contract Choice in Modern Agriculture: Cash Rent versus Cropshare," Journal of Law and Economics, University of Chicago Press, vol. 35(2), pages 397-426, October.
- D.J. Brown & J.H. Atkinson, 1981. "Cash and Share Renting: An Empirical Test of the Link Between Entrepreneurial Ability and Contractual Choice," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 296-299, Spring.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Otsuka, Keijiro & Hayami, Yujiro, 1988. "Theories of Share Tenancy: A Critical Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 37(1), pages 31-68, October.
- Siddhartha Dasgupta & Thomas O. Knight & H. Alan Love, 1999. "Evolution of Agricultural Land Leasing Models: A Survey of the Literature," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(1), pages 148-176.
- Mike Adams & Philip Hardwick, 1998. "Determinants of the leasing decision in United Kingdom listed companies," Applied Financial Economics, Taylor & Francis Journals, vol. 8(5), pages 487-494.
- John R. Graham & Michael L. Lemmon & James S. Schallheim, 1998. "Debt, Leases, Taxes, and the Endogeneity of Corporate Tax Status," Journal of Finance, American Finance Association, vol. 53(1), pages 131-162, 02.
- Laurie Baker & Paul J. Thomassin, 1991. "Financing New Farm Entrants: The Long-term Leasing Option," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 255-269, 07.
When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:34353. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.