Improving your farm lease contract

Iowa State University Extension and Outreach - Ag Decision Maker Series

Type: PDF
Knowledge level: Intermediate

Farm Table says:

US-based, but good overview of different structures of leases and things to consider when entering an arrangement.
  • Good explanation of different types of leases and their advantages and disadvantages.
  • Embedded links lead out to further information that includes worked through examples.
  • Handy graph on ‘Share of risk by type of lease agreement’
  • Interesting section on economic considerations

Really nice summary document of lease opportunities and considerations. Fixed cash lease, flexible cash lease, crop-share lease, and custom farming contract options are discussed and the advantages and disadvantages of each are explored.

When developing a farm lease, areas that should be carefully considered include:

  • sharing of costs
  • harvesting
  • maintaining fertility
  • controlling weeds
  • maintenance of buildings
  • making and financing improvements
  • length of the lease.

Economic factors should also be considered when developing a lease agreement. These centre around long-term profitability, return on investments, productivity of land and scale efficiencies.

2017 - United States - Iowa State University Extension and Outreach - Ag Decision Maker Series
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