The climbing farmland rent rates have led some landlords and tenants to look at non-traditional lease agreements, Dobbins said. Respondents indicated that while 47 percent of their lease agreements were fixed cash, 36 percent of the leases were flexible agreements.
In a flexible lease, or variable cash agreement, the landlord and tenant agree on a minimum amount of rent and share a portion of the yield and price risk associated with crop farming.
Farmers, farmland owners, potential buyers and others with an interest in farmland can learn more about farmland values from Purdue Extension and industry experts at the March 27 Financial Health of Farming and Land Values Conference near West Lafayette. More information is available at http://www.agecon.purdue.edu/commercialag/progevents/financialhealth.html