Common Contracts
1 similar Background contracts
BackgroundBackground • January 28th, 2015
Each year, sugarcane land is taken out of production for a variety of reasons or transferred from one tenant to another. Anytime this occurs there are typically several questions regarding the economic impact of losing this acreage and at what level, if any, should the tenant be compensated for these impacts. Given the multiyear production cycle for sugarcane, determining fair and equitable compensation can be very difficult. Lease agreements, in some instances, specifically address how compensation will be determined. Obviously, in those situations, the lease agreement will dictate the level of compensation. However, in situations in which the lease does not specify if and how compensation will be made, there is a need for a process or methodology to serve as the basis for settling potential disputes regarding compensation. Using economic theory and principles, faculty in the LSU AgCenter’s Department of Agricultural
