Flexible Farm Lease Agreements

William Edwards, Ann M Johanns, and Alejandro Plastina ( June, 2017 )

Summary

Fluctuating markets and uncertain yields make it difficult to arrive at a fair cash rental rate in advance of each crop year. Some owners and tenants use flexible lease agreements in which the rent is not determined until after the crop is harvested. The final rental rate is based on actual prices and/or yields attained each year.

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