Fluctuating markets and uncertain yields make it difficult to arrive at a fair cash rental rate in advance of each crop year. Some owners and tenants use flexible lease agreements in which the rent is not determined until after the crop is harvested. The final rental rate is based on actual prices and/or yields attained each year.
Flexible leases have the following advantages:
The actual rent paid adjusts automatically as yields or prices fluctuate.
- Risks are shared between the owner and the tenant, as are profit opportunities.
- Owners are paid in cash--they do not have to be involved in decisions about crop inputs or grain marketing.
You can click on these links for more help with your flex lease agreements.
Flex Lease Agreement
Ag Decision Maker Page:
/agdm/whatsnew.html
2009 Cash Rent Survery
2009 Cash Rent Survey
6/9/2009