By: Barry Ward, Leader, Production Business Management, Ohio State University Extension
The North Central Farm Management Extension Committee has recently updated three lease bulletins that have been widely used by farm landowners and farm operators to evaluate lease arrangements. This article highlights the bulletin, “Fixed and Flexible Cash Rental Arrangements for Your Farm” (NCFMEC-01).
The purpose of this newly revised publication is to help operators and landowners develop equitable cash-rent arrangements and assist them in making sound decisions based on an equitable evaluation of resources. The first section of this bulletin (Part I) addresses whether a fixed cash-rent lease arrangement should be used. Part II discusses how to develop an equitable fixed cash rental rate. Part III outlines methods for developing a flexible cash rental lease and their advantages and disadvantages. Part IV discusses the importance of putting the agreement in writing. A sample lease form is also included.
This newly revised North Central Region bulletin titled “Fixed and Flexible Cash Rental Arrangements for Your Farm” is available at the “AgLease101” website under the “Document Library” tab at: http://www.aglease101.org/