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Do Landlord-Tenant Relationships Influence Rental Contracts for Farmland or the Cash Rental Rate?

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  • James Bryan
  • B. James Deaton
  • Alfons Weersink

Abstract

A considerable portion of North America’s farmland is rented-out by nonfarmer landlords. Our survey of farmers in southern Ontario, Canada, provides a refined understanding of who these landlords are and whether variations in landlord-tenant relationships influence rental contract choice and/or the magnitude of cash rent. We find that crop share arrangements are more likely to emerge among family relations. However, we do not find strong evidence that family relations explain variation in the magnitude of cash rental rates.

Suggested Citation

  • James Bryan & B. James Deaton & Alfons Weersink, 2015. "Do Landlord-Tenant Relationships Influence Rental Contracts for Farmland or the Cash Rental Rate?," Land Economics, University of Wisconsin Press, vol. 91(4), pages 650-663.
    • Handle: RePEc:uwp:landec:v:91:y:2015:i:4:p:650-663
    Note: DOI: 10.3368/le.91.4.650
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    Citations

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    Cited by:

    1. Cao, Yueming & Bai, Yunli & Zhang, Linxiu, 2021. "Plot Size, Adjacency, and Farmland Rental Contract Choice," 2021 Conference, August 17-31, 2021, Virtual 315378, International Association of Agricultural Economists.
    2. Tongwei Qiu & Xinjie Shi & Biliang Luo, 2022. "Formalizing agricultural rentals in China: Does local public action help?," Development Policy Review, Overseas Development Institute, vol. 40(4), July.
    3. Zhang, Hongliang & Mu, Jianhong E. & McCarl, Bruce A., 2018. "Adaptation to climate change via adjustment in land leasing: Evidence from dryland wheat farms in the U.S. Pacific Northwest," Land Use Policy, Elsevier, vol. 79(C), pages 424-432.
    4. B. James Deaton & Chad Lawley & Karthik Nadella, 2018. "Renters, landlords, and farmland stewardship," Agricultural Economics, International Association of Agricultural Economists, vol. 49(4), pages 521-531, July.
    5. Johanna CHOUMERT & Pascale PHELINAS, 2015. "Farmland Rental Values in GM Soybean Areas of Argentina: Do Contractual Arrangements Matter?," Working Papers 201532, CERDI.
    6. Yueming Cao & Yunli Bai & Linxiu Zhang, 2022. "Plot Size, Adjacency, and Farmland Rental Contract Choice," Land, MDPI, vol. 11(4), pages 1-21, April.
    7. Arnold, Chelsea J. & Taylor, Mykel R. & Tonsor, Glynn T. & Yu, Jisang, 2022. "Impacts of Tenant Experience and Social Capital on Leasing Decisions by Landowners in Kansas," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322468, Agricultural and Applied Economics Association.
    8. Jia Chen & Jingwen Xu & Hongxiao Zhang, 2022. "Impact of Relationship Governance and Third-Party Intervention on Farmland Transfer Rents—Empirical Evidence from Rural China," Land, MDPI, vol. 11(5), pages 1-16, May.
    9. Baoling Zou & Biliang Luo, 2018. "Why the Uncertain Term Occurs in the Farmland Lease Market: Evidence from Rural China," Sustainability, MDPI, vol. 10(8), pages 1-15, August.
    10. Maximilian Humpesch & Stefan Seifert & Alfons Balmann & Silke Hüttel, 2022. "How does tenancy affect farmland prices? Effects of lease status, lease term and buyer type," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 83(2), pages 242-263, September.
    11. Jia Chen & Jingwen Xu & Hongxiao Zhang, 2022. "Explanation of the Phenomenon “Different Prices on the Same Land” in the Farmland Transfer Market—Evidence from China’s Farmland Transfer Market," Agriculture, MDPI, vol. 12(12), pages 1-13, December.
    12. Jun Yeong Lee & Grant Durbahn & Peter F. Orazem & Wendong Zhang, 2023. "The roles of risk preferences, selection, and uncertain returns on land contracts," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 220-233, March.
    13. Leonhardt, Heidi & Braito, Michael & Penker, Marianne, 2019. "Why do farmers care about rented land?," FORLand Working Papers 14 (2019), Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation".
    14. Kionka, Marlene & Kuethe, Todd H. & Musshoff, Oliver & Odening, Martin & Ritter, Matthias, 2022. "Bargaining Power in the Agricultural Land Rental Market," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322186, Agricultural and Applied Economics Association.
    15. Tang, Liang & Ma, Xianlei & Zhou, Yuepeng & Shi, Xiaoping & Ma, Jia, 2019. "Social relations, public interventions and land rent deviation: Evidence from Jiangsu Province in China," Land Use Policy, Elsevier, vol. 86(C), pages 406-420.
    16. Kualwik, Jacek, 2016. "Selected problems of farmland valuation and setting rents for its lease," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 252639, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    17. Kuethe, Todd H. & Bigelow, Daniel P., 2018. "Bargaining Power in Farmland Rental Markets," 2018 Annual Meeting, August 5-7, Washington, D.C. 274113, Agricultural and Applied Economics Association.
    18. Douglas W. Allen & Allison Borchers, 2016. "Conservation Practices and the Growth of US Cash Rent Leases," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 491-509, June.
    19. Ning Geng & Mengyao Wang & Zengjin Liu, 2022. "Farmland Transfer, Scale Management and Economies of Scale Assessment: Evidence from the Main Grain-Producing Shandong Province in China," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    20. Jian Zhang & Ashok K. Mishra & Peixin Zhu, 2021. "Land rental markets and labor productivity: Evidence from rural China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(1), pages 93-115, March.
    21. B. James Deaton & Chad Lawley, 2022. "A survey of literature examining farmland prices: A Canadian focus," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(2), pages 95-121, June.
    22. Arnold, Chelsea & Yu, Jisang & Taylor, Mykel & Palm-Forster, Leah H. & Banjeree, Simanti, 2023. "The Role of Risk in Farmland Contract Choices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.
    23. Ruifeng Liu & Zhifeng Gao & Yefan Nian & Hengyun Ma, 2020. "Does Social Relation or Economic Interest Affect the Choice Behavior of Land Lease Agreement in China? Evidence from the Largest Wheat−Producing Henan Province," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
    24. Zhang, Jian & Mishra, Ashok K. & Hirsch, Stefan & Li, Xiaoshun, 2020. "Factors affecting farmland rental in rural China: Evidence of capitalization of grain subsidy payments," Land Use Policy, Elsevier, vol. 90(C).
    25. Bigelow, Daniel & Borchers, Allison & Hubbs, Todd, 2016. "U.S. Farmland Ownership, Tenure, and Transfer," Economic Information Bulletin 262138, United States Department of Agriculture, Economic Research Service.

    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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