Factors Determining Differences in Local Hunting Lease Rates: Insights from Blinder-Oaxaca Decomposition

Factors determining local hunting lease rates, and differences between rates across Mississippi regions, were analyzed using Blinder-Oaxaca decomposition procedures. Per acre rates were 26% greater in west versus east Mississippi. Depending on the decomposition procedure employed, differences in resource endowments accounted for 43% to 69% of the gap. Differences in habitat quality were primarily responsible. Lessors in east Mississippi can improve their rates by reducing lease sizes and shortening contract lengths. Information about differences in local lease rates and the sources of those differences is critically needed by landowners, outfitters, hunters, financial institutions, and natural resource managers.