Cotton Rental Arrangements in Arkansas

Lucas D. Parsch, Diana M. Danforth


 
ABSTRACT

The majority of cropland in eastern Arkansas is operated by full tenants and owner-tenants. A 1991 survey of cropland rental arrangements in eastern Arkansas showed that 51% of cotton arrangements are straight share, where the tenant provides as rent a percentage of crop receipts and government payments. The remainder were cash rent and cost share arrangements. Estimates of returns above variable costs and land rental costs for typical arrangements showed that cash rent had the highest return, followed by cost share and straight share. Irrigation resulted in lower returns under each of the share arrangements, but higher returns under cash rent.



Reprinted from Proceedings of the 1994 Beltwide Cotton Conferences pp. 496 - 500
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998