Farmland rent, flexibility and the future

Once it was common for area landowners to receive a share of each year’s crop as compensation for the use of their land. When prices and yields were strong, landlords and farmers shared in the good. When prices and yields were poor, landlords and farmers shared in the bad.

Over time, more farmers began paying cash rent, a fixed amount that doesn’t change no matter what happens with prices and yields. Today, cash rent is the norm in most of Agweek country.

But crop prices are more volatile that ever, and that’s causing some farmers and landlords to take a closer look at flexible rents, a sort of hybrid that combines features of crop shares and cash rent.

Read the story in the March 5 issue of Agweek.

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