September 16, 2019

Leasing Land

by Michael Langemeier

A series of leasing articles that discuss cash rents and land values…

ARTICLES WITHIN PUBLICATION:

Leasing Principles for Cropland

June 8, 2019

When examining the leasing option, a farm needs to decide, along with the landowner, whether they want to use a cash lease, a crop share lease, or a flexible cash lease.

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Providing Reports for Crop Landowners

July 8, 2019

Communicating is prudent for a tenant to provide updates of crop conditions throughout the year and make sure that crop shares and possible bonuses emanating from flexible cash leases are understood by both parties.

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Flexible Cash Rent Leases

August 15, 2019

Switching from a fixed cash rent lease to a flexible cash rent lease allows a lower base rent to be established while simultaneously allowing landowners to share in relatively high crop revenues if they occur.

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Incorporating Conservation Practices and Improvements into Cropland Leases?

September 16, 2019

Most operators are interested in renting ground for a long period of time, so they are also interested in long-run productivity and the soil health of each tract of land that they farm.

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Should I Use an Annual or a Multi-Year Cropland Lease?

October 14, 2019

A vast majority of cropland leases are in effect for only one year. Multi-year leases provide incentives for tenants and landowners to invest in long-term improvements, maintain soil fertility, and encourage conservation practices.

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Comparing Net Returns for Alternative Leasing Agreements

September 2, 2022

Obtaining control of land through leasing has a long history in the United States.  Leases on agricultural land are strongly influenced by local custom and tradition.  However, in most areas, landowners and operators can choose from several types of lease arrangements.  With crop share arrangements, crop production and often government payments and crop insurance indemnity payments are shared between the landowner and operator.  These arrangements also involve the sharing of at least a portion of crop expenses.  Fixed cash rent arrangements, as the name implies, provide landowners with a fixed payment per year.  Flexible cash lease arrangements provide a base cash rent plus a bonus which typically represents a share of gross revenue in excess of a certain base value.  Each leasing arrangement has advantages and disadvantages.

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Indiana Farmland Values & Cash Rental Rates: 2022 Update Webinar

August 24, 2022

Recorded August 24 | Purdue ag economists break down the Purdue Farmland Values and Cash Rents Survey results and the USDA Land Values report.

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Indiana Farmland Prices Grow at Record Pace in 2022

August 10, 2022

It is safe to say that the last year was unlike any other in recent memory. The COVID-19 pandemic caused significant disruption to our lives and the global economy. Surprisingly, many of the current economic forces put upward pressure on farmland prices.

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UPCOMING EVENTS

Monthly Corn & Soybean Outlook Update

Webinar each month following USDA’s release of the updated World Agricultural Supply and Demand Estimates (WASDE). Catch the next monthly update on April 1 for the corn and soybean outlook following release of USDA’s Prospective Plantings reports. Registration is free.

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2023 Crop Cost and Return Guide

March 24, 2023

The Purdue Crop Cost and Return Guide offers farmers a resource to project financials for the coming cropping year. These are the March 2023 crop budget estimations for 2023.

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2023 Indiana Farm Custom Rates

March 24, 2023

The rates reported in this publication were compiled from questionnaires received from farmers, farm owners, farm custom operators, and professional farm managers in Indiana. Purdue Extension Educators distributed the questionnaires at meetings and events statewide during the last month of 2022 and the first three months of 2023. Respondents were asked to report custom rates they had either paid or received during the past year.

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Making Your 2023 Crop Insurance Decision

February 24, 2023

Now is a great opportunity for producers to review their crop insurance choices for the upcoming season. Purdue University Center for Commercial Agriculture’s ag economists Michael Langemeier and James Mintert walk participants through key considerations for their 2023 insurance options. In particular, they discuss a handy thumb rule to use when considering an increase in coverage levels for RP insurance.

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