On the Ricardian rent and the allocation of land under joint price and yield uncertainty

A result on the comparative statics of land rent under joint price and yield uncertainty and expected utility maximisation is provided. An increase in the strength of the negative price--yield dependence is modelled using the concordance stochastic order. The effect of a greater price--yield dependence on equilibrium rent depends on the degree of producer risk aversion. Specifically, rent increases (decreases) under an increase in negative dependence between price and yield if the relative risk aversion is greater (less) than one and non-farm income is less (greater) than production costs. Copyright 2004, Oxford University Press.