The impact of share leasing on the financial condition of farm operations in the Texas panhandle /
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| Other Authors: | , , |
| Format: | Thesis Book |
| Language: | English |
| Published: |
1989.
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| Subjects: | |
| Online Access: | ProQuest, Abstract Link to OAKTrust copy |
| Abstract: | A crop share lease is one in which the rent paid by the tenant is a contracted percentage of the farm output. An increasingly larger percentage of farmland in the United States is being operated by part owners, farm owners who acquire a portion of the land they cultivate through rental arrangements. Improving agricultural technology has meant that larger farm sizes are needed for profitable production. Leasing may be the only way a farmer can expand an operation, given capital constraints. Economists have conducted extensive theoretical research on share leasing issues. Tax equivalent theory, pioneered by Earl O. Heady, maintains that share leasing may result in an economically inefficient outcome. This theory maintains that unless production costs and farm output are shared in equal proportions, total farm output will decline. Equal efficiency theory evolved after tax equivalent theory and maintains that output will be the same on share leased land and owner operated land regardless of the terms of the share rental arrangement. A questionnaire was developed to obtain information on the most common share leasing arrangements in the Texas High Plains. The over 450 responses provided information on how farm output and input costs are most commonly divided for common crops. Data obtained from the questionnaires was used to determine how share lease arrangements were effecting the financial condition of part owners and full tenants, those that acquired 100 percent of the land in their farming operation through rental arrangements. Common share lease arrangements described on the questionnaire were analyzed with the aid of a share lease negotiation template, a budget summary template developed for this study, and the Agricultural Financial Analysis Expert System. Most common leases were found to be advantageous to the landlord. Stipulations in leases affected the financial condition of tenant farmers to a greater extent when irrigated crops were grown than when dryland crops were grown. This study demonstrated that renegotiation of share leases to make them consistent with the tax equivalent definition of equitability would provide tenants with a significant improvement in their financial condition. |
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| Item Description: | Typescript (photocopy). Vita. "Major subject: Agricultural economics." |
| Physical Description: | x, 133 leaves : illustrations ; 29 cm |
| Bibliography: | Includes bibliographical references. |