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Fixed and Flexible Cash Rental Arrangements for Your Farm

Rental arrangements for cropland vary widely from one geographic area to another. What is desirable or equitable for one particular landowner/operator relationship is not acceptable for others. The purpose of this publication is to help operators and landowners develop equitable cash-rent arrangements and assist them in making sound decisions based on an equitable evaluation of resources. The first section (Part I) addresses whether a fixed cash-rent lease arrangement should be used. Part II discusses how to develop an equitable fixed cash rental rate. Part III outlines methods for developing a flexible cash rental lease and their advantages and disadvantages. Part IV discusses the importance of putting the agreement in writing. Part V cites other references that may be helpful in setting up your own fixed or flexible cash rental arrangement. A sample lease form is also included.

NCFMEC-01

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