Cash rent negotiation help

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Farmland owners and tenant farmers might have to negotiate longer and harder to come up with a mutually acceptable rental rate for the 2009 crop season, says Craig Dobbins, Purdue University agricultural economist. You should carefully calculate both production costs and projected revenue when estimating margin on the 2009 crop. That information is valuable when negotiating cash rents. Also, prepare to have a conversation with your landowner about your financial situation.

For more suggestions on negotiating cropland leases in tough economic times, including creating flexible cash-rent agreements, check out “Establishing a Cash Rent in an Uncertain Economic Environment,” by Dobbins and fellow Purdue agricultural economists Luc Valentin and Alan Miller.

 



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