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Lease Pricing for Farm Real Estate
Author(s) -
Barry Peter J.,
Moss LeeAnn M.,
Sotomayor Narda L.,
Escalante Cesar L.
Publication year - 2000
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 - 10.1111/1058-7195.00001
Subject(s) - lease , real estate , business , residential real estate , finance , real estate development , agricultural economics , economics
A lease pricing model for farm land is developed that is consistent with traditional leasing principles and allows greater flexibility in determining crop share levels either separately or in combination with a fixed cash payment. The share levels are linked to the farm's soil productivity, the costs of each party's resource contributions, and their respective cost structures. The resulting menu of lease prices can enhance the equitability of leasing contracts, expand the range of contract choices, promote mutual incentives for the leasing parties, and heighten the efficiency of leasing markets through greater standardization of leases.