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Farm Management, Income tax, Accounting

2009 Farm Lease Negotiations

The 2009 Farm Lease negotiations will be challenging to say the least.  With the variability in the corn and soybean markets it will be challenging to arrive at a fair rent.  Certainly there will be those aggressive farmers who will bid very high per acre amounts in an effort to farm additional acres.  But in an arrangement where you have built a long term relationship with your tenant it is not feasible to "put the farm out for bid".  While that will certainly achieve the highest cash rent, it wil certainly not be your long term tenant that will be farming the ground.

As Professional Farm Managers we pride ourselves in our long term relationships with our clients and our tenants.  We take a great deal of stock in the relationships that have been built over time.  So how do we propose to handle the variablity in the grain markets and the euphoria in the grain sector?  By using a variable lease.

The variable lease we have developed meets the specifications of the Government's Farm Service Agency (FSA) definition of a cash rent lease.  Since it is not tied to the actual production of the farm or the actual prices received by the tenant it will qualify as a cash rent lease.

It is an exciting time in agriculture and everyone wants to enjoy their share of the increased profits.  Contact us for a discussion on how Nissly and Nissly can assit you in realizing improved revenue from your farmland assets.