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A Methodology for Setting Long Term, Fixed Cash Farmland Leases

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  • Schonev, R.A.

Abstract

In North America, a number of environmental and wildlife institutions are interested in long term farmland leases because farm ownership laws often restrict their ownership of farmland. These groups have a number of special needs in leasing including long term lease life times and exceptional transparency to both the public and to farmland owners. Canadian farmland and stock markets are used to derive the risk premiums associated with a fixed versus a variable cash payment and alternative contract lengths. Using an example tract, special attention is given to the assessment of alternative lease payment structures, including split payment, payment up front, and intermediate length (up to 5 years) leases.

Suggested Citation

  • Schonev, R.A., 1999. "A Methodology for Setting Long Term, Fixed Cash Farmland Leases," 12th Congress, Durban, South Africa, July 18-24, 1999 346581, International Farm Management Association.
    • Handle: RePEc:ags:ifma99:346581
    DOI: 10.22004/ag.econ.346581
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    References listed on IDEAS

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    Keywords

    Land Economics/Use; Agricultural Finance;

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