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Tillable Sustainable Flex Lease

Do you want a lease with your farmer that ensures the land is sustainably farmed, but don’t know how to make it fair to both farmer and landowner?

Tillable’s Sustainable Flex Lease provides you with:

  • Legally vetted sustainable flex lease that shares risk and reward between farmer and landowner

  • Transparent calculation and disbursement of sustainable flex lease payments, including any income earned through carbon credits

  • Online activity monitoring to ensure sustainable practices are adhered to (e.g. cover crops, split fertilizer application)

 

Download a Sustainable Flex Lease

Download a copy today, and speak with one of our farm specialists to see how Tillable can help you ensure your land is farmed sustainably.

Why Sustainable Farming Matters

Tillable has created a new lease structure to help landowners and farmers more sustainably farm their land and equitably split carbon credits.

You may have heard that more precise nutrient applications, reduced tillage, and cover crops help produce higher levels of organic matter, reduce erosion, and keep more carbon in the soil.  However, though these practices improve the resilience, health, and long-term value of the farm for the landowner, they can be costly for farmers in the short term.

That’s why Tillable created the Tillable Sustainable Flex Lease. With input from leaders in sustainability and emerging carbon credit programs, we have designed a structure that is equitable to both the landowner and the farmer, and splits the rewards of adopting more sustainable outcomes equitably.

 

Key features of the Sustainable Flex Lease are:

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Work with your current farmer

Shared risk and reward on farm income

Equitable sharing of carbon credits earned

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Transparency on farm stewardship activities

How Tillable's Sustainable Flex Lease Works

Tillable’s Sustainable Flex Lease provides the landowner with both a base cash payment and a bonus payment (depending on the performance of the farm), plus an allocation of any carbon credits earned. The farmer will also agree to implement a minimum of three sustainable farming practices (listed below).

Base Cash Payment
A base payment that is no more than 90% of last year’s cash rent

Bonus Payment
Farmer pays a bonus payment calculated on 35% of the estimated gross farm revenue* for corn and 45% of gross for soybeans, minus the base cash payment.

    • Landowners and farmers may further negotiate this percentage and we believe after 5 years savings on input costs may enable an increase to 37% for corn and 47% on soybeans.

Below is an example of how the bonus payment would be calculated on a sample farm:

Carbon Credits
If the farmer agrees to enroll in a carbon credit program of their choosing, the landowner and farmer will split carbon credit income 35/65 between the landowner and farmer respectively.

Sustainable Practices
The farmer agrees to implement a minimum of 3 sustainable practices below:

  1. Timing: Apply fertilizer in the spring, or implement split applications of fertilizer 
  2. Product: Stop applications of Anhydrous; use more stable Nitrogen sources 
  3. Method: Implement subsurface banded or injected application
  4. Rate: Reduce total synthetic nitrogen by more than 5%
  5. Cover crops: Plant a cover crop
  6. Tillage: Implement reduced tillage, or no till practices
  7. Planting: Plant a cash crop into unterminated cover crop (i.e: plant green)
  8. Land Use:  Implement grass waterways and/or riparian zones/filter strips

*estimated gross farm revenue is calculated based on the average of local grain prices multiplied by actual yields. Actual yields will be based on combine produced yield maps. 

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What does Tillable do?

Tillable will do the hard work. Tillable will work with your farmer to help them submit the data required to comply with the terms of the Sustainable Flex Lease. We will calculate the bonus payment and any carbon credits due to the landowner based on the program that your farmer chooses. We will keep good records of farm activity which will be made accessible to both you and your farmer via the Tillable website.

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How much does it cost?

Tillable will administer the Sustainable Flex Lease for $250/year. The fees may be paid by the landowner or farmer, or split.

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