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| Dengu, T.; Lyne, Michael C.. |
| This study tests the hypothesis that an efficient rental market for cropland is a significant determinant of agricultural investment in the communal areas of KwaZulu-Natal. An efficient rental market creates an opportunity cost for under-utilisation, which tends to transfer resources to more effective users. The efficiency of a rental market is compromised by the presence of transaction costs that reduce returns for both lessees and lessors. Transaction costs include risk arising from a possible breach of the rental contract. Potential losses caused by a breach of contract can be reduced by introducing a credible third-party to witness the contract. Likewise, moral hazard can be reduced by contracting with trusted persons. Data from household surveys... |
| Tipo: Journal Article |
Palavras-chave: Customary institutions; Insecure land tenure; Rental market; Transaction costs; Moral hazard; Crop production; Land Economics/Use. |
| Ano: 2007 |
URL: http://purl.umn.edu/8012 |
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| Du, Xiaodong; Hennessy, David A.. |
| While farmland rental markets are likely to be spatially differentiated, the fine spatial structure of row-crop quality land should have a significant effect on cash rent determination. This study provides a rigorous empirical understanding of the effect of land spatial heterogeneity on cash rental rates. The lacunarity index is employed to measure spatial heterogeneity of land quality, which is built directly upon a soil quality measure, the land parcel’s corn suitability rating index (CSR). A panel data random effect model is applied on annual survey data of farmland cash rental rates of Iowa for 1987-2009. As expected, land spatial heterogeneity has a statistically significant and negative effect on local cash rent rates. The effect’s origin warrants... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Land spatial heterogeneity; Rental market; Agricultural Finance; C5; G1; Q1. |
| Ano: 2011 |
URL: http://purl.umn.edu/103450 |
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