Let`s use a simple example to illustrate how a flexible rental price can work. Suppose the current cash rent is $240 per hectare. With this figure, the base rent is set at $216 (or 90 per cent of the current cash rent). We assume that the farm uses a corn-soy rotation. Cost budgets for corn and soybeans set harvest receipts at $805 for corn and $593 for soybeans. Do you have any questions about the cash rent or the value of the land on your arable land? This article briefly discussed flexible leases. For more information on cash rents and land values, visit the Center for Commercial Agriculture website (here). Rental. The process of drafting an agreement tends to prevent access and misunderstandings and to improve communication between the parties and to provide details of the parties` intentions and a written protocol for the heirs. The second function of a written lease is to provide legal proof of the agreement. This publication contains a blank lease form to help landlords and tenants reach their agreement in writing.
The form provided is not supposed to advise a… Rents for arable land vary considerably from area to area. What is desirable or fair for a specific owner-operator relationship is not acceptable to others. The aim of this publication is to help operators and landowners develop fair cash rents and help them make informed decisions based on a fair assessment of resources. The first part (part I) deals with the question of whether a fixed lease agreement should be put in place. Part II examines how to develop a fair fixed rent rate. The third part describes the methods of developing a flexible cash rental scheme and their pros and cons. Part IV examines the importance of a written declaration of the agreement.
Part V cites other references that can help set up your own fixed or flexible bar rental. A typical rental form is also included. Flexible barleasings are attractive to landowners who want to capture the upward trend in years when we have relatively high crop prices, crop yields or both.