Thoughts on Land Rental Agreements for 2015

7 January '15

 

As we kick off 2015, here are some thoughts on land rental agreements for the upcoming year, from Patrick Lynch, Certified Crop Advisor: 

A successful land rental agreement must be beneficial to the landlord and the renter. Landlord concerns include "will I get paid, will my land be worth more next year than it is this year, will my renter take short cuts this in 2015 because of lower commodity prices?”

Renters fears include “will my landlord want more money or even as much as I paid in 2014 and 2013?"

The reality is that for 2015 there will be less profit in growing cash crops than there was the last two years. And it may be no better in 2016.


Why Renting Farmland by Tender is the Smart Choice

5 December '14

In today’s market for agricultural land, demand remains strong for farmland, most notably for quality crop land suitable for growing grains.

With high demand for land, and with land renting on the rise, it’s no wonder lease rates for renting land are such a hot topic.

This is a particularly hot topic for farmland owners. In fact, over 99% of landowners we speak with share the same question: What is the going rate for rental land? Now if you’re not sure why that question is so tricky, we recommend you read our blog about the key determinants of rental land, but in a nutshell – there simply is no ‘going rate’ that can assure a landowner of the rental value of their own land.

So what does this mean? It means that farmland rental prices can be a very murky area.

Despite being so difficult to ‘find’ a going rate, the importance of a fair price can translate into real dollars and cents for a landowner....

 


Should I Sell Cereal Straw?

21 July '14

 


Summer wheat harvest is on many farmers' agendas, so Patrick Lynch, Certified Crop Advisor, answers an important question: 
'should I sell straw or spread it?'

Below, Pat breaks it down to a simple conclusion, along with some advice for optimal nutrient management and land lease best practices. 
Should I sell cereal straw? 
Straw added back to the soil can add 1 tonne per acre of organic matter. That is a lot of organic matter, but in reality, in terms of an acre, it is not much. A good soil with 4% organic matter has 40 tonnes of organic matter. Adding 1 more tonne is not a lot. Furthermore, straw organic matter will break down quickly so that in 2-3 years there will only be 2-3 hundred pounds of organic matter from the straw...
 

Farmland Leases: Keeping Your Landlord Informed

29 May '14



We touched base again with Patrick Lynch, Certified Crop Advisor to get his take on how farmland lease tenants can effectively communicate with their landlords about what’s taking place on the land. 

Since most farmers are either hitting the fields or should be soon, now is a great time to remind tenants of how important communication is when it comes to great farmland rental relationships.  
Pat said one of most effective ways of communicating what you’re doing on the land – is snapping a photograph. This truly is a case where a ‘picture is worth a thousand words.’
With today’s technology, particularly with digital photographs and how easily they can be shared, Pat suggests that farmers get into the practice of taking a picture (or pictures) of the landlord’s land, and giving it to them as a way to keep them up to date. 
Pat gave us some scenarios when photographs can be particularly valuable...
 

What Should Farm Landowners Consider When it Comes to Fertilizing the Land?

13 March '14

Part of RentThisLand.com’s mission is to provide access to relevant news, media and expert insights about topics that impact land rental.  We want to highlight factors that landowners may find helpful, both in determining their own lease expectations, and in identifying which tenant will offer a valuable partnership in terms of the farmland’s care and maintenance - in addition to simply the offer price. Our stance about rental relationships is that the value of your land needs to be reflected in the value of your lease price, but also the quality of your tenant and their practices.

Often, this value is an outcome of what’s defined in the lease agreement itself.
We’ve teamed up with Patrick Lynch, Certified Crop Advisor, to get his expert take on some of the top considerations for farmland owners. We'll be sharing his insights in this article as well as future posts. Particularly for grain land, the soil can be compared to a bank account, where certain farm practices make withdrawals from the land, and others make deposits. As a soil and crop expert, Patrick has great insight about how the land’s value can be maximized, through best leasing practices. 
The first question we asked him is, what should landlords be thinking of when it comes to fertilizing the land? ...