Document Actions
Farmland Rental Resources
One of the most frequently asked questions is "What cash rental rate is fair?" The question is asked by both landlords and tenants. The issue has two side that should be viewed as exactly that a question with two answers, with each party figuring out cost and returns for their investment. While everyone would like it to be one rate that fits all, the reality is every situation is different. It truly is a negotiation that needs to happen with each transaction.
For the landlord, the DIRTI five cost of ownership provide a baseline. The ownership costs are Depreciation, Interest, Return on investment, Taxes and Insurance which provides a starting point for negotiations. Considerations should also be given for things a tenant might do such as weed control on non-tillable acres, snow removal and other task that have value to the landlord.
From a tenant view, input cost of producing the crop, transportation, marketing, plus returns to the capital investment in machinery, management and labor need to be covered. The tenant will want to know the value of extra things they may do that adds or maintains the value of the land for the owner.
Below is a listing of resources from The Ohio State University and other land grant universities you will find useful as you evaluate a fair rent for your farm.
Some general legal requirements for lease enforceability that both a tenant and landlord should be aware of based on Ohio law are based on the length of the agreement:
|
Term |
Legal Requirements |
|---|---|
| Up to 1 year | Verbal can be enforceable |
| 1 to 2 years | Must be in writing and signed by the parties |
| 2 to 3 years | Must be in writing, signed by the parties, notarized, and recorded in the county where the land is located |
| 3 years or more | Must be in writing, signed by the parties before two witnesses, notarized, and recorded in the county where the land is located |
Surveys of Cash Rental Rates
Ohio Farmland Cash Rental Survey 2006-07 from Ohio State University Extension
*Updated* 2008 Land Values Survey from Ohio State University Extension
*Updated* 2008 Cash Rent Values Survey from Ohio State University Extension
Ohio Cash Rents-2007 from Ohio Agricultural Statistics Service
Indiana Cash Rental Survey-2007
Iowa Cash Rental Survey-2007
Surveys of Land Prices
Ohio Land Value Survey 2006-07 from Ohio State University Extension
Ohio Land Values 2007 from Ohio Agricultural Statistics Service
An Overview of US Farm Real Estate Markets-October, 2006 publication of Ohio State University Ag Economics
Ohio Farm Real Estate Markets, 2003 publication of Ohio State University Ag Economics
Computer Programs to Determine Lease or Land Values
Excel Spreadsheet-Rent Calculator from Ohio State University Extension
Landbid-Land Value Calculator from Ohio State University Extension
Fair Rent from Center for Farm Financial Management
Crop Production Yields
Crop Yields by County in Ohio from Ohio Agricultural Statistics Service
General Land Rental Agreement Information
Legal and Management Aspects of Ohio Farmland Leases, FR-0001-01
Flexible-Cash Rents for Farmland, FR-0002-01
Farm Rental Agreement Checklist, FR-0003-01
Managing Landlord-Tenant Relationships: A Strategic Perspective, FR-0004-01
Crop Share Leasing in Ohio, FR-0005-01
Tax Issues for Farm Rental Agreements, FR-0006-02
Leasing Farm Buildings and Livestock Facilities, FR-0007-02
Establishing a Fair Pasture Rental Rate, FR-0008-06
Flexible Cash Rents Based on Crop Insurance Parameters
Sample Agreements and Other Information
Cash Farm Lease-sample agreement
Crop Share or Crop Share-Cash Rental Agreements for Your Farm-General Information
Crop Share or Crop Share-Cash Lease-sample agreement
