Agricultural Economics Department
Date of this Version
June 2005
Abstract
The popularity of cash leases as opposed to crop share leases has increased in recent years. Historically, crop share leases have predominated, but it is estimated that about half of the cropland leases in Nebraska are now cash leases and half are crop share. There are a number of reasons for this trend. With the competition for land, cash leases establish a specific rental rate which can easily be negotiated or bidup. The equivalent cash for a crop share situation cannot be determined until after harvest when the yield and market price of the crop are known. The land owners in many cases, are getting further away from the land and have less familiarity with production practices and grain markets. As a result, many landowners don’t want to be involved with selling their grain or with paying a share of the production costs.
Comments
Published in Cornhusker Economics, 06/22/2005. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.
http://www.agecon.unl.edu/Cornhuskereconomics.html