ASFRMA: Market volatility drives demand for variable cash rents
Flexible leases are of benefit to both the landowner and farm operator as they provide the ability to adjust and react to the market. It provides a fair platform that benefits both sides, making the most of any volatility.
Landowners often rely on the farm operator to help determine a fair rent and even what type of rental arrangement to use. Landowners now have a wider range of choices to consider when they formulate how to best manage their income-producing asset.
Reviewing a lease has never been more important, especially with the income that farms can generate today. Landowners we work with ask us for advice on the optimum lease option for their situations. They want to know what is fair for land in their area as well as the impact land values might have.
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