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Variable cash rent
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Wolf
Posted 8/15/2006 22:42 (#36119 - in reply to #36067)
Subject: RE: Variable cash rent


We have one farm that we pay based on yield something like 120 or below is one price they it is $1 per bushel up to I think 150 then that is the highest it goes and is that rate from their on out.

you could also do it on income including price of the commodity and yield doing it on one or the other could make the renter pay higher rents in years where their income doesn't necessarily go up

at 200 bushel they could get a lower price per bushel than at 150 bu and could make more money at 150 bu and $3.00= $450 than 200 bu and $2.00= $400
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