Monday, December 27, 2010
Cash Leasing Increasing?
Extension reports an increase in cash leasing as opposed to shares, suggesting an increase in the use of crop insurance to handle risk means farmers are more able to accept the increased risk of cash leasing. There's another possible contributory cause: the declining impact of farm program payments. Relatively speaking, such payments are less important these days; payments have gone down and prices have gone up. When payment limitation is a problem, there's an advantage to share leasing. But with the lesser importance of farm programs, there's also less incentive to worry about payment limitation in managing your affairs.