AgLease101.org. All publications… Are focused on developing equitable lease agreements Discuss advantages and disadvantages of the lease type to.

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Presentation transcript:

AgLease101.org

All publications… Are focused on developing equitable lease agreements Discuss advantages and disadvantages of the lease type to landowner and tenant Include examples for calculating rent under different methods Describe methods for valuing contributions of parties Emphasize need for communication Have been reviewed by ag lawyers

Establishing a Crop-Share Arrangement Share yield-increasing variable expenses in the same percentage as the crop Adjust arrangement as technology changes relative costs Share total returns in the same proportion as parties contribute resources At the end of the lease, compensate operators for portion of long-term investments made that are not fully depreciated

Share total returns in the same proportion as parties contribute inputs AgLease101.org7

Fixed and Flexible Cash Rental Arrangements Fixed cash rent methods Options to determine fixed cash rent – Bid – Auction – Professional farm manager Putting flexibility in cash rent agreements – Crop price – Yield – Input costs

Fixed Cash Rent Methods Cash rent market approach Landowner’s cost or desired return Landowner’s adjusted net-share rent Operator’s net return to land Percent of land value Percent of gross revenue Dollars per bushel of production Fixed bushel rent AgLease101.org9

Putting Flexibility in Cash Rent Agreements Crop-share leases were the original flexible rents – The scale of today’s operation makes share rents impractical Cash rents may be adjusted by market prices, crop yields and production costs AgLease101.org10

Pasture Rental Arrangements Possible ways to delineate stocking rate – By the head – By animal units (both parties should agree on what an animal unit is) – By pounds Important to agree on the number, size, type of animals and grazing period duration Establishing land owner and livestock owner contributions Cash, share of gain, price risk adjustment 11AgLease101.org

Great resources for a variety of programs… Annie’s Project Women in ag conferences Stand-alone meetings

Mobile Optimized AgLease101.org16

Social Media Integration AgLease101.org17

Questions?