Special Report

Cropland leasing in times of uncertainty

Cropland leasing arrangements – a Kansas State professor tells farmers at AG CONNECT Expo how to make them work in times of uncertainty. Flexible cash rents are becoming more common but can be complex and are best for longer term agreements, according to Ag Economics Professor Kevin Dhuyvetter. He promotes shorter term leases, such as three-year agreements, “The reason why I would advocate more shorter-term leases is because the world is so volatile today that if we lock in some kind of fixed rates long-term, one of the two parties is going to be unhappy.”

And Dhuyvetter’s take home message to growers is let your landlords know how things are going.  He says, “Be very proactive in sharing information with your landowners. The world is changing, a lot of volatility out there. Make sure your landlords know what’s going on and that means telling them the good news and not just the bad news. Sometimes we highlight that ‘fertilizer prices are high!’ but we forget to tell them about everything else.”

AUDIO: Kevin Dhuyvetter (2:00 mp3)