Early summer leading into fall is always important for landowners and farmers. Landowners hope their land has produced a great crop, and farmers are trying to lock in the best input prices while simultaneously preparing for harvest. Fall is also a great time to discuss next year’s terms if your farm lease is open. Here are three steps you can take to get the conversation started.
- Determine your expectations
Your farmer will already have a number in their mind, and you should also have your acceptable range set. Landowners should prepare for cash rent farm lease negotiations by educating themselves on current rents in the market.
- Set a timeline with your farmer
Set a date for a discussion and a goal date for a decision and farm lease signing.
- Collect Fertilizer and Harvest Data Now
Both parties should come to the table with data in hand to bolster records and protect the asset’s value.
Getting leases agreed to in the fall benefits all parties involved. These are essential fall practices, but many landowners still wait to set rents and farm leases after harvest or even after the first of the year. Variables such as high fuel and land prices, inflation, and high-interest rates will make this year’s conversations even more challenging.
What if I did not terminate my lease terms?
While there may be no changes to your agreement with your farmer to worry about, there are still a few things to consider before the next growing season begins:
- Have a conversation with your farmer about how this year has gone and what they expect yields to be.
- Discuss your plans for the farm when the lease is over (collecting more data, terminating and renegotiating the farm lease next fall, adjusting the rent, etc.)
- Ask if they would be willing to try and share harvest and fertilizer data and costs now so that you are better informed moving into conversations next fall.
If you make your intentions clear for next fall, your farmer may voluntarily abide by some of the requests you require in the lease now.
We would love to help you prepare for any lease conversation. Contact us to set up your free farmland insights review.
YOUR FARMLAND INSIGHTS REVIEW INCLUDES:
- An overview of essential farm data such as your soil maps, crop history, and how that information compares with nearby farms.
- A free rent evaluation and a custom estimated range
- Information on best practices for managing your farmland asset