Flexible Farm Lease Agreements

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Date
2021-05
Authors
Johanns, Ann
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Extension and Outreach
Abstract

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 landowners 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, store.extension.iastate.edu/Product/6492.pdf, showed that flexible leases accounted for 18% of all cash rent leases in Iowa.

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