Farmland Leasing workshops

Kelvin Leibold, farm management field specialist

Situation
Landlords and tenants want to know how to estimate and calculate what fair rental rates are. There are $20 billion of farm program subsidies that are know being transferred to landlords in the form of higher rents since the 2002 Farm Bill. Landlords and producers need to understand how this impacts rental rates and to what extent.

Response
I presented thirteen workshops across central Iowa explaining five different ways to calculate rent and how to set up variable cash rent leases. The program also looked at the estimates of current land values based on three different sources. The program also provided information from the 2002 Census of Ag data that was just released, on trends in farm size and farm income, government payments, and land ownership.

Impact
Two hundred eighty people attended. The average response for the value of the program to the individuals was over $1,200 each. Participants commented on the need for information on costs of production and government program payments to help both parties determine fair rental rates.

 

Page last updated: July 8, 2006
Page maintained by Linda Schultz, lschultz@iastate.edu