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Because of the extra risk, tenantswho cash lease land should earnmore money than those tenants withshare leases. A competitive landmarket and the need to supportbigger and newer machinery caneasily lead tenants to pay more thanthey should for a cash lease. Shareleases tend to avoid the overpaymentproblem as the share percentage isusually relatively fixed. Since shareleases are not always available, thispaper presents a way for tenants todetermine if a cash lease rate isreasonable for the area by using apartial budget approach thatcompares lease types.

Subject(s): Financial Economics

Issue Date: 2010

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/96412 Page range: 230-234

Total Pages: 5

Record appears in: American Society of Farm Managers and Rural Appraisers > Journal of the ASFMRA

Autor: Ibendahl, Gregory A.

Fuente: http://ageconsearch.umn.edu/record/96412?ln=en

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