Tom Olsen, farm management field specialist
Situation
1. Landowners and tenants need current information as to the trends in land
value and rental rates. Likewise, updates in changing economic conditions, including
cost of production, insurance, and the government program are important.
2. The 2002-2007 Farm Program is now in play. The financial implications to
profits and the effect to rents and land value are complex and require economic
analysis. Different leasing arrangements are being considered with varying risk
levels for landlords and tenants.
3. Changing demographics for both landlords and tenants are creating new leasing
trends.
Response
Seven area farm-leasing meetings were held during August 2003 to cover Buena
Vista, Pocahontas, Sac, Calhoun, Carroll, Ida, Crawford, Monona, and Woodbury
counties. One hundred and ninety landowners/tenants attended these meetings.
The registrants received a 100-page leasing resource book with additional copies
sold to others in the area. The notebook contained several Extension publications
pertinent to ag land leases and production.
Tom Olsen gave a review of the leasing book as well as the cash rent survey,
land value survey, and cost of production. Sample rent calculations for each
county were demonstrated. Landlord lien law and tax law changes were also discussed.
The second portion of the program was dedicated to an analysis of various lease
types. Tom Olsen presented the different types of leases each with varying profit
potential for both the landlord and the tenant. Relative levels of production
and market risk were evaluated. Application to specific individual needs was
discussed
A survey of those attending the meetings revealed more than 80 percent rated the program "greatly exceeded my expectations”. When asked to value the meeting, replies ranged from $25 to $10,000. Written comments included: "This was good", "Well presented", and "Q and A is the best part."
