July 8, 2019

Providing Reports for Crop Landowners

Communicating with landlords is crucial for tenants regardless of the type of lease that is utilized.  It 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.  This article discusses how to effectively communicate through timely reports and the importance of providing an end of the year report.

Many landowners, particularly those that have farmed the ground in the past or grew up on the farm, have interest in what is going on during the growing season.  Landlord reports could include a description of what was planted, how the crops are developing, rainfall, and photos of the crop.  For a crop-share lease, it is important to keep the accounting of the expenses current.  Explain each item on their bill and make sure the landowners understand each expense.  It is often important for landowners to be able to classify each expense (e.g., seed, fertilizer, pesticide) for income tax purposes.  Also, landowners often need information pertaining to historical crop yields so they can make crop insurance decisions.  For flexible cash leases, it is important to provide potential yield and price information to landowners so they have a feel for whether they may or may not receive a bonus.  Of course, landowners should have a detailed explanation as to how base case rents and bonuses are computed.

We encourage tenants to provide an end of the year report to each landowner.  This report should include at least the following information: crops planted, crop yields by field or tract, production notes (including challenges), land issues (e.g., drainage problems), and plans for next year.  For crop share leases, a detailed summary of shares should be included.  For flexible cash leases, components of the rent formula (i.e., crop yields and prices) should be included.

TEAM LINKS:

PART OF A SERIES:

RELATED RESOURCES

Farm Bill and Crop Insurance Options

February 28, 2022

Michael Langemeier presented on Farm Bill and Crop Insurance Options for 2022 in Shelby county. ARC-IC, ARC-CO, and PLC farm bill program options, as well as RP, SCO, and ECO insurance products were discussed.

READ MORE

Incorporating Conservation Provisions into Crop Leases, Great Lake Crops Summit

January 26, 2022

Michael Langemeier presented Incorporating Conservation Provisions into Crop Leases at the Great Lake Crops Summit in Mt. Pleasant, Michigan.

READ MORE

Comparisons of Net Returns for Crop Share Leases and a Fixed Cash Rent Lease

September 1, 2021

This article updates net return projections for 2021, and compares the net returns of two crop share leasing arrangements with a fixed cash rent leasing arrangement.

READ MORE

UPCOMING EVENTS

Indiana Farmland Values & Cash Rental Rates: 2022 Update Webinar

August 24, 2022 at 1:00 p.m. EDT   Values for farmland have increased over the last year. Purdue ag economists…

Read More

Monthly Corn & Soybean Outlook Webinar Series

Webinar each month following USDA’s release of the updated World Agricultural Supply and Demand Estimates (WASDE). Catch the next monthly update on August 12th for the corn and soybean outlook following release of USDA’s August Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports. Registration is free.

Read More

May Corn & Soybean Outlook Update

May 16, 2022

Recorded May 16 | Purdue ag economists discussed the corn and soybean outlook following USDA’s May World Agricultural Supply and Demand Estimates (WASDE) report and provided implications for crop marketing strategies.

READ MORE

Comparing Net Returns for Alternative Leasing Arrangements

August 4, 2021

A west central Indiana case farm is used to illustrate net returns to land derived from crop share, fixed cash rent, and flexible cash lease arrangements. 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.

READ MORE

Indiana Farmland Prices Hit New Record High in 2021

July 26, 2021

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.

READ MORE