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| When I started farming in '71 almost everything was rented on a 50/50 basis. On some of the poorer ground there were some 1/3 - 2/3 rents & cash rent was a rarity. Now cash rent is the norm. There's still some 50/50 rents out there but they are becoming fewer & fewer though IMO most years the 50/50 will make the landlord as much or more than a cash rent. Several of the 50/50 rents now have what is known as a "priviledge rent" that goes with them, basically a small cash rent (norm $25-$40/ac) for the right to farm the ground 50/50. IMO, it's nothing more than a ploy to by farm managers to get the government payments. Also a few farms are rented with "flexible rents" that have factors that kick in as yield, price, or net changes.
One thing to consider. FSA has lately been taking the stance if it's a cash rent that flexes with yield or price then it's share rent & landowner gets part of the farm program payments. | |
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How do you rent ground?
