Managing for Profit

Consider variable cash rent

Farm income is down to a fraction of what it was a few years ago, and cash rents are a big part of input costs.  University of Illinois farm management specialist Gary Schnitkey suggests working out a land rental agreement that could be good for the land owner and the renter.  In the face of lower farm income projections, Schnitkey suggests renegotiating cash rent arrangements into variable, or flexible cash rent.  The arrangement is based on some measure of farm productivity, such as yield, market price or a combination.

AUDIO: Gary Schnitkey (3 min. MP3)