In these arrangements the landlord will share input costs, including but not limited to seed, fertilizer, fuel, while we provide all of the labor and remaining input costs. Once harvested, proceeds will be divided according to the agreement, which normally ranges from 50/50 to 60/40. In this scenario, we both share the risk with the other person and the landlord will satisfy the "actively engaged in farming" requirement of federal programs.
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, we offer 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.
We provide the equipment and labor to perform all crop production activities. The landowner pays a basic lump sum fee for the services.
This alternative allows a landowner who wishes to remain classified as a farmer the ability to retain close control of the farm business but not be actively involved in performing day to day activities. In this case, the landowner would make all of the farming decisions such as arranging for and purchasing all inputs and also receives all income from sales.