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2015•Land EconomicsRequires access

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

James E. Bryan, Brady J. Deaton, Alfons J. Weersink

Open publisher page 40 citations

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. (JEL Q15)

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What this paper is about

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. (JEL Q15)

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Available 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. (JEL Q15)

Key concepts: Landlord, Renting, Cash, Business, Economics, Labour economics, Finance, Political science

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