The Role of Risk in Farmland Contract Choices

Chelsea Arnold, Jisang Yu, Mykel Taylor, Leah H. Palm-Forster, Simanti Banerjee

Research output: Contribution to journalArticlepeer-review


Understanding the role of risk in farmland leasing contract choices is important to assess the welfare consequences of farm policies or environmental changes that affect production risk. We use a unique dataset of landowners and tenants in Kansas to examine the role of risk in their farmland leasing contract choices. We find that greater production risk and more risk-averse landowners encourage fixed cash rent contracts. As many variables can potentially affect contract choices, we use a penalized regression to show that the inclusion of relationship variables leads to little change in the main results.

Original languageEnglish (US)
Pages (from-to)398-411
Number of pages14
JournalJournal of Agricultural and Resource Economics
Issue number2
StatePublished - May 2023


  • adaptive lasso
  • farmland leasing
  • landowner-tenant relationships

ASJC Scopus subject areas

  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics


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