A Partial Budget Approach to Estimating Cash Rents

Because of the extra risk, tenants who cash lease land should earn more money than those tenants with share leases. A competitive land market and the need to support bigger and newer machinery can easily lead tenants to pay more than they should for a cash lease. Share leases tend to avoid the overpayment problem as the share percentage is usually relatively fixed. Since share leases are not always available, this paper presents a way for tenants to determine if a cash lease rate is reasonable for the area by using a partial budget approach that compares lease types.


Issue Date:
2010
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/96412
Published in:
Journal of the ASFMRA (American Society of Farm Managers and Rural Appraisers), 2010
Page range:
230-234
Total Pages:
5




 Record created 2017-04-01, last modified 2017-08-29

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