Files
Abstract
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.