Proceedings

PR – A Comparison Of Share And Cash Rent Leasing

1st Paragraph – Cash leasing and share leasing allocate risk very differently.With cash leasing, farmers assume all the risk because landlords get a fixed amount of money each year. Any profit the farmer earns on cash rented land is subject to variability in yields and prices. Yields are affected by a whole host of factors but most of these are weather driven. There are tools farmers can use to mitigate the effects of these risks, but the risks themselves are still present. Even with good risk management tools, farmers are likely to have variability in net income.

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Author(s): Ibendahl, G.

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Organizations(s): Mississippi State University