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Does a Rising Biofuels Tide Raise All Boats? A Study of Cash Rent Determinants for Iowa Farmland under Hay and Pasture AgEcon
Du, Xiaodong; Hennessy, David A.; Edwards, William M..
Iowa’s farmland consists of over 16% hay crops and pastureland, a significant portion of which is under cash rental contracts. This study investigates the comparative relationships between cash rental rates for cropped land and non-cropped land, where the latter includes hay and pastureland. We find that higher crop prices resulting from biofuel demand induces land use conversion from non-cropped land to crop production and thus bids up non-cropped land rents. Compared with changes in cropped land cash rents, non-cropped farmland rents could increase by a higher percentage. Non-cropped land cash rental rates are largely determined by crop and feeder cattle prices, population density, soil quality, and proportion of non-cropped land in a specific area. A...
Tipo: Working or Discussion Paper Palavras-chave: Biofuel; Pastureland; Cash rents; Random effects model; Resource /Energy Economics and Policy; Crop Production/Industries.
Ano: 2008 URL: http://purl.umn.edu/44231
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The Connection Between Cash Rents and Land Values AgEcon
Ibendahl, Gregory A..
The last few years have seen big increases in land values. Cash rents have also increased but perhaps at a slower rate than land values. This paper examines the ratio of land values to cash rents to determine if how cash rents have changed in relation to land value changes. This ratio is important because it helps indicate whether cash rents are a good way of controlling farmland relative to purchasing the land. Results indicate there may be a lag in cash rents before they match the level of land prices. However, this relationship does not always hold.
Tipo: Presentation Palavras-chave: Land values; Leasing; Cash rents; Farmland; Real estate; Agricultural Finance; Crop Production/Industries; Farm Management; Production Economics.
Ano: 2012 URL: http://purl.umn.edu/120055
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The Incidence of Agricultural Subsidies on Farmland Rental Rates: Overcoming Bias From Inertia, Expectations, and Tenancy Arrangements AgEcon
Hendricks, Nathan P.; Janzen, Joseph P.; Dhuyvetter, Kevin C..
Recent studies indicate that the effect of government subsidies on rental rates for farmland may be lower than once thought and lower than predictions from theory. However, there are still a number of unresolved issues in estimating subsidy incidence econometrically. We identify three such issues, inertia, expectations, and tenancy arrangements, and employ panel data from the state of Kansas to resolve them. Our econometric model suggests that subsidy incidence on rental rates is low in the short run, but consistent with predictions from theory in the long run.
Tipo: Conference Paper or Presentation Palavras-chave: Farm subsidies; Incidence; Cash rents; Agricultural and Food Policy; Land Economics/Use; Q1; H5.
Ano: 2010 URL: http://purl.umn.edu/61469
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COMPARING LAND VALUES AND CAPITALIZATION OF CASH RENTS FOR CROPLAND AND PASTURE IN GEORGIA AgEcon
Flanders, Archie; White, Fred C.; Escalante, Cesar L..
Nonagricultural factors impact land values to cause a divergence of discounted cash rents for agricultural land and land values. Focus is given to the portion of land values attributable to discounted cash rents. Unique characteristics for cropland and pasture lead to differences in capitalization rates. Nonagricultural factors are greatest for pasture. Keywords: land values, cash rents, capitalization, discounted cash rents, cropland, pasture
Tipo: Conference Paper or Presentation Palavras-chave: Land values; Cash rents; Capitalization; Discounted cash rents; Cropland; Pasture; Land Economics/Use.
Ano: 2004 URL: http://purl.umn.edu/34614
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