Farm rent today, need advise

Rent is still done as you note, a little prep time leeway with no fee is good to allow the renter to begin the recovery process with a minimal expense as a start out. We get our rent at Quarter markers first in March and final of year in September which allows for the renter to recover from winter dead time and that period they expend the most money on equipment rehab generally also as to sales points for stock or harvested materials.

I see from the OP, that you are applying the lime. Ought to have a clause in the contract, that the renter should apply lime as needed, otherwise you're gonna be on the hook for it in perpetuity...

Really depends on BOTH “landowner” & “tenant”(renter) agreed arrangementS. A rental contract is a good investment. It can be as simple or involved, per YEAR agreements. Several partial rental payments are good for both entity’s annual budget requirements. Landowner real-estate tax per acre in our area can range from $20-30/ acre. IMO, ground exiting CRP that requires ADDITION MEASURES(soil tests, lime, base fertility levels, & land preparations(bush hogging/mowing/spraying), etc.., should be landowner’s responsibility since they received ALL crp payments. So a “first year” or “first couple years” rental agreement might allow any adjustments in favor towards a new tenant who does any effort to bringing land to “normal” crop base levels??
If landowner wishes to partake in any harvested crop’s grain marketing risks(storing grain til possible improved market price) then arrangements can be written into rental agreement for such??
Lots of variables that can be considered. Or, it can be extra simple too. A year by year rental agreement allows for any realized/unrealized opportunities/liabilities for both entities. So it’s very important that rental contract include ample COMMUNICATION terms, such as INTERVALS, LIST of pertinent TOPICS, & FUTURE improvements/suggestions. Some landowners wish to re-invest profits and others don’t. Whatever the rental contract includes is usually a plus.

Edited by AC7060IL - 18 Jun 2021 at 6:58pm

Tom, my farm in Shelby Co., IA. is cash rent, Get paid 1/2 March 15 and 1/2 Oct 15. I pay for lime every 5 years ( use soil testing recommended amount), they pay all else. Have 2 7000 bu bins w/12.5 hp fans no burner or stirators, get $1400 annual rent on bins, have sep. meter, renter pays electric. 

That has happened north of here where some farmers actually made enough money to pay their leases, just no money for their own pockets.

i rent mine on shares.   It took me and the renter working together to come to the best way to make that work.   Personally, this is the only way i would rent, but understand that it might not work for everyone!

ac fleet wrote: Shares dont work for MOST of us!

Never been involved in shares but I can see 50 ways it could go wrong. Cash rent is the only way to go. I could see having it graduated so that in years like this if corn reaches $7 rent is more.

Had our attorney write up a contract. It'll be done in 2 weeks. We apply the lime this time, we redo the river crossing and have the cat operator come back and clean up the mess he left when removing 2 fence rows full of trees. After speaking to the future renter, cash rent will be due 3-15 and 10-15. Lawyer is gonna add a couple of other things that I don't quite yet understand. , looks like its gonna be a pretty straight forward contract. Thanks guys for the info.

True what Jay said. If you don’t understand, the lawyer is doing a poor job of explaining.