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:
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.
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.
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
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.
Below is an example of how the bonus payment would be calculated on a sample farm:
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.
The farmer agrees to implement a minimum of 3 sustainable practices below:
*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.
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.
Tillable will administer the Sustainable Flex Lease for $250/year. The fees may be paid by the landowner or farmer, or split.