It is often believed that a legal document promotes the rights of the landowner, so we have tried to add new elements to protect both the tenant and the environment: show future farmers and owners that you are engaged in sustainable farming practices and protect all parties by providing as much information as possible around your cash lease. Data transmission requirements. Your written agreement should include requirements for the exchange of yield information and fertilization. This is a normal situation that helps to ensure that everyone is informed about the health and use of the country. At least the lease should include five things: commitment to sustainable agricultural practices. It`s an easy way to put your money where your mouth is. For example, homeowners should be prepared to reimburse their farmer for lime applications that support the land for several years if the nutrient has not yet been fully used before the end of the lease. You should receive a refund for the estimated residual value of this application. A certified expert can help you determine the value of your arable land. Find one via the American Society of Farm Managers – Rural Appraisers. Getting professional help is helpful because it is often difficult to know what the market price can be on a hectare, as registrations and yield can be difficult to track. Unlike many other assets, productivity growth plays a key role in determining the value of arable land. With improved productivity, production (return) increases and the value of arable land increases due to future production potential.

This is not the case for other real estate investments where property income is the exclusive agents of value. This series discusses the factors to consider when renting your farmland. MSU Extension offers a land Rent Calculator to help producers compare the impact of land rents with their farm`s net farm income. By inserting estimated revenues and expenses, a producer can determine whether the base rent payable is reasonable or whether the base tenancy agreement should be discussed or even renegotiated. This tool is available on the MSU Extension Farm Management website. The share of the crop is considered a flexible land use contract, in which the landowner and tenant distribute the income of the crops on the farm in a predetermined ratio or percentage.