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Finding middle ground encouraged for cash rents

An agriculture business specialist says finding middle ground on cash rent leases is a good strategy. Joe Koenen, with the University of Missouri Extension, says he’s talked with farmers who have found meaningful compromise with their landlords, “I’m not going to say in all cases they’ve gone down as much as prices have gone down. I think, especially, landlords who understand the ag economy and what’s going on are willing to give some. And if both sides give some, then they can work something out.”

Koenan says regular communication with landlords is the key – and it often helps when producers offer other things, “Maybe the landlord wants a building repaired or some fencing done or maybe yard mowed or something and maybe that’s something you can work together on in order to give them something as well as they give you lower rent.”

Koenen says it is NOT a good idea for farmers to tell their landlords about any new purchases they’re making, like a new truck or expensive vacation. Koenen recommends using five-year averages of farm income and expenses – as well as checking current USDA ag statistics and University Extension assessments on cash rents.

Income on current Missouri corn/bean rotation farms is down more than $150-dollars per acre.