Negotiating land rents can be a dicey proposition any year, but those conversation may be more difficult this year. With stronger corn and soybean prices and more government payments, land owners may want to adjust rental rates. MinnStar Bank Farm Management Analyst and Senior Vice President Kent Thiesse says commodity prices and government payments shouldn’t be a factor in negotiations. “Rental rates should be set based on average production levels and anticipated prices. To me, 2020 is a good reason to look at flexible leases rather than a set base rental rate.” Landlords may not prefer flexible leases, but Thiesse says it can be a win for both parties. “It allows the farmer to keep land costs at breakeven levels and if they do get extra price, yield or income from those acres, they can share that with the landlord. From a landlord’s perspective, it allows them to keep a good farmer on the land.”
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