IDEAS home Printed from https://ideas.repec.org/p/isu/genres/35884.html
   My bibliography  Save this paper

Sharing Financial Risk through Flexible Farm Lease Agreements

Author

Listed:
  • Edwards, William
  • Hart, Chad E.

Abstract

A simulation model representing a north central U.S. corn and soybean farm was used to estimate the degree of financial risk borne by the tenant and the landlord under 10 different types of flexible cash leases. Probability distributions for yields, prices and production costs were incorporated. Measures of risk included standard deviation of profits, probability of loss, and 10th percentile value at risk. A profit sharing lease that included rent adjustments for all three variables shifted the most risk from the tenant to the landowner, and reduced the tenant's probability of incurring an economic loss from 51% to 37%.

Suggested Citation

  • Edwards, William & Hart, Chad E., 2013. "Sharing Financial Risk through Flexible Farm Lease Agreements," Staff General Research Papers Archive 35884, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:35884
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Langemeier, Michael & Liu, Yangxuan, 2020. "Comparing Net Return to Land and Risk for Alternative Leasing Arrangements," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2020.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genres:35884. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.