Cass County Extension to Host Farmland Leasing Meeting August 29
As summer winds down, ISU Extension Ag Economists are hosting Farmland Leasing informational meetings across the state. These Farm Leasing Arrangements meetings will give landowners, tenants, and agri-business professionals information and materials they need to make decisions regarding farmland ownership, management, and leasing practices as they plan for the future.
The Farm Leasing Arrangements meeting in Atlantic will focus on strategies for landowners and tenants to manage their resources with declining crop prices. Cass County Extension will be hosting the meeting on August 29 from 9 to 11:30 a.m. at the Cass County Community Center, 805 West 10th Street in Atlantic. Information on other leasing meetings around the state, as well as links to ISU Extension and Outreach farmland leasing resources, can be found at http://www.extension.iastate.edu/agdm/info/meetings.html.
“Farmers are dealing with a changing picture in agriculture as they look to the future,” according to Tim Eggers, ISU Extension Field Ag Economist. “The corn price used for the August 2013 leasing meetings was $4.75 per bushel. At that time, December 2014 corn futures were $5.15. On August 4, the corn futures price for December 2014 is $3.68, and the harvest delivery price at a nearby elevator is $3.19. The pie has shrunk.”
Estimating a cash rental rate is a constant of the farm leasing arrangements meeting. This year’s decreased profitability will require landlords and tenants to look closely at 2015 production cost estimates.
Nineteen percent of cash leases in Iowa are flexible in which the rent is not determined until after the crop is harvested. Flexible leases work during times of high prices and low prices. The formulas underlying flexible leases may need to be reviewed.
The farm safety net has changed with the new farm bill. Landowners have received, or will receive, notification about updating base acres and yields. “The last opportunity to update base acres and yields was with the 2002 farm bill,” said Eggers. “The time before that was 1981. Opportunities to update base acres and yields have been rare, and this opportunity needs to be taken seriously.”
The Farm Leasing Arrangements meeting costs $15 per person, which includes the 100-page Farm Leasing Arrangements booklet and a copy of the presentation. Pre-registration is required by August 27. To pre-register for the Atlantic location, call the Cass County Extension office at 712-243-1132 or email firstname.lastname@example.org.
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