Written by standing on 16-Oct-1999 0:42 We are considering a rental agreement for some neighboringland. Any suggestions as to crop share or cash rent. Therenter has suggested 1/3 crop share and we carry allexpenses. Is this feasible?
Announcement
Collapse
No announcement yet.
Standing
Collapse
Logging in...
Welcome to Agriville! You need to login to post messages in the Agriville chat forums. Please login below.
X
-
Crop share agreements allow the renter to spread his risk and allows the landlord to share in the profits. The landlord usually shares some of the cash expenses in these arrangements (often 1/3 of the fertilizer and herbicide costs but there is no set rule and many variations exist) From a renter's point of view, he can minimize risk with this type of arrangement but he loses autonomy in decision making. Cash rent puts all the risk in the renter's hands but he is free to make all annual cropping decisions for that year and does not have to share profits which is why this arrangement is often the preferred choice on v. productive land or during a period of good grain prices.
- Reply to this Thread
- Return to Topic List
Comment