Computing a Cropland Cash Rental Rate
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Fluctuating markets and uncertain yields make it difficult to arrive at a fair cash rental rate in advance of each crop year. To address this problem, some owners and tenants use flexible lease agreements in which the rent is not determined until after the crop is harvested. The final rental rate is based on actual prices and/or yields attained each year. The 2017 Iowa Farmland Ownership and Tenure Survey showed that flexible leases accounted for 18 percent of all cash rent leases in Iowa.
Plastina, Alejandro and Edwards, William, "Computing a Cropland Cash Rental Rate" (2019). Extension and Outreach Publications. 356.
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