This study tests cropland contract hypotheses utilizing a landlord data set. Ordered probit and classical regression models are estimated and presented identifying factors that affect the contract type selection and terms. Results suggest credit constraints are a viable land-leasing hypothesis....

Land leasing is a major source of the land input to production agriculture. Responses from a survey of landlords leasing crop land in Arkansas are analyzed to better understand those factors motivating landlords in the type of lease they select and the terms of those leases. Probit models are...

Major innovations of the 1996 FAIR Act are PFC payments and almost complete planting flexibility. Because payments are attached to the land and not production, landlords are thought to capture most of the PFC payments. With the use of a November 1997 operator survey of cropland leasing...

This study examines land contract decision-making with the use of an eastern Arkansas data set. Estimated probit models used to test contract choice hypotheses support a credit constraint hypothesis, indicating that contract choice is based on: 1) the tenant's financial position and operating...

We search for evidence consistent with the notion that endogenous credit constraints play a role in cattle cycles. Beef cow inventories are found to be more sensitive to credit constraints during periods of falling than rising asset values. Inventories of heifer replacements exhibit only weak...

The sensitivity of farm inventory investment to movements in cash flow is tested. Inventories should be sensitive to shifts in cash flow because inventory investment is readily reversible and inventories are a significant portion of assets. Investment models estimated with Kansas farm panel data...

Theoretically, leasing and debt are thought to be substitutes. This assumes that a lease payment, which is a fixed obligation like a loan, displaces debt and reduces debt capacity, i.e., if firms have optimal debt to equity ratios, then, to the extent that it represents "off-balance-sheet"...