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Controlling Farmland in the Red River Valley: A Stochastic Dominance Analysis of Alternative Means
Author(s) -
Gustafson Cole R.
Publication year - 1989
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/11.2.243
Subject(s) - renting , stochastic dominance , profitability index , dominance (genetics) , economics , cash , equity (law) , business , land values , agricultural economics , finance , land use , econometrics , biochemistry , chemistry , political science , law , gene , civil engineering , engineering
A tenant farmer's preference for a cash vs. share rental arrangement is found to be highly conditional on the terms of each arrangement in a whole farm situation analysis of a representative North Dakota Red River Valley farm. Failure of landlords to contribute to the production expenses of share rent tenants, government commodity programs, multi‐peril crop insurance and tax provisions favor cash renting. Profitability of alternative land control strategies and methods of financing were evaluated using the criterion of stochastic dominance.