A Relationship of Trust: Are State School Trust Lands Being Prudently Managed for the Beneficiary?

26 Pages Posted: 28 Dec 2006

See all articles by Mark A. Sunderman

Mark A. Sunderman

University of Wyoming - College of Business - Department of Economics and Finance

Ronald W. Spahr

University of Memphis - Finance

Samuel Runyan

University of Wyoming

Abstract

Every state entering the Union in the United States since 1803 received land grants from the federal government for the support of their public schools. Inherent in this federal grant is the fiduciary duty to prudently and effectively manage trust assets for the beneficiary, their school systems. This paper addresses the question of whether managers of trust lands are meeting their fiduciary responsibilities of maximum economic benefit for their beneficiaries. Realized market value-based economic returns from grazing lease revenues and capital appreciation for all twenty-three counties in Wyoming are compared with returns that may have been generated from alternative investment policy alternatives. Market values and capital appreciation for school trust lands in Wyoming are estimated from hedonic models formulated from ranch sales data and grazing revenue data.

Keywords: land grant, fiduciary duty, trust land, grazing lease, ranch sale, grazing

JEL Classification: D61, C42, C33, G32,G38,H30,K11,K23,O13,O18,O21,R11

Suggested Citation

Sunderman, Mark A. and Spahr, Ronald W. and Runyan, Samuel, A Relationship of Trust: Are State School Trust Lands Being Prudently Managed for the Beneficiary?. Journal of Real Estate Research Vol. 26, No. 4, 2004, Available at SSRN: https://ssrn.com/abstract=953931

Mark A. Sunderman (Contact Author)

University of Wyoming - College of Business - Department of Economics and Finance ( email )

P.O. Box 3985
1000 E. University Avenue
Laramie, WY 82071-3985
United States
307-766-4199 (Phone)
307-766-5090 (Fax)

Ronald W. Spahr

University of Memphis - Finance ( email )

United States

Samuel Runyan

University of Wyoming ( email )

Box 3434 University Station
Laramie, WY 82070
United States

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