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

Author

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  • Johanna CHOUMERT

    () (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Pascale PHELINAS

    ()

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 201532, CERDI.
  • Handle: RePEc:cdi:wpaper:1764
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    References listed on IDEAS

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    Keywords

    Argentina ; Hedonic price ; Lease ; Contracts ; Soybean;

    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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