Inthisandthefollowingthreechapters,,asetofregulationsonagricultural,[1]Thiswasappliedtoallfarmrentals（fixedandsharerentsalike）able4,isandthenextchapter.

Thedifficultyofanalysisseemstostemfromtheproblemsof（1）identifyingvariouslegalconstraints,boththosethatarevaguelyimpliedandthoseexplicitlystatedinlaw;（2）specifyingtheoptionsofchoice;and（3）,forexample,maygiverisetodifferentoutessimplybecausetheinterpretationsoflawdiffer,

Ibegintheanalysisbypres,whichincludepensatingp

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Anoffsettingcontractualrearrangementisdefinedasacontractualrevisionwhich,intheabsenceoftransactioncostsandrisks,producesnoeffactualrearrangementsbetweenthecontractingpartiestorestoretheequilibriumthathadbeenarrivedatbythemarkettermsofcontract,herentalsharerestriction.

Supposeanunrestrainedmarketrentalperc,theresultofthispercentagereductionisaredistributionofinefromthelandownertothetenant,,whatwillthecontractingpartiesdo?

CompensatingPayments

Asadevicetoattentuateprivatelandrights,therestrictiononrentalpercentagealoneaffectslittle,,thereareseveralrevisionsintheformofpaymentthatthelandownercouldusetoprotecthiswealthpositionwithoutviolatingtherestriction.(1)Thesimplestoftheseistocharg”key”,thelandownermayrequirethetenanttopayapresentlump-sumequaltothediscountedvalueofthereducedannualrentalineforthecontractedyears.(2)If,beforetherentalsharerestriction,partofthenonlandfarmingcosthadbeenbornebythelandowner,hemaysimplyrequirethetenanttopaythefullcost.(3)Ithadbeenapracticeinsomesharecontractsthatalandownerallowedthetenanttousepartofthelandtogrowsome”cereals”forthetenantspersonalconsumption,whichwerenotrequiredtobeshared;instead,,termsofthecontract,itisclearthatthelasttwomethodsbinedmaynotbesufficienttorestoretheinitialsituation.

TenureRearrangements

(1)Hemaysimplyrepossessthetenantsholdingandfarmthelandhimself,orhirelaborerstodothetilling.(2)Supposetheleasedurationcontract(3)Alternatively,thelandownermaysellhisholdingsoutrighttohistenants,atapriceperacreequaltothediscountedpresentvalueofrentperacrebeforethesharerestriction.(4)Ifatenantdoesnothavesufficientfundstopaythelandpriceimmediately,aninstallmentp,however,isaclearrestorationoftheinitialwealthconditiononlyifthepriceoflanddoesnotfall,thatis,ifthereisnospecializationinriskbearingormanagement,orifthereisnodeclineinspeculativedemandtoholdlandasaresultofthelandreform.