Corn & Soybean Digest has a very nice basic article about farmland leases and the relative mix between risk and reward (return on investment) for each. The information is based upon Iowa data, but the concept translates well to Indiana. I work with both landlords and farmers (tenants), and when we are discussing leases (on either side of the table), we also discuss how my client wants to balance risk versus return (either in land rent income or crop income). There are both risk and tax reasons to lean toward one model more than another, and those reasons vary with the individual. I’ve enjoyed working with some very creative farmers to come up with enticing packages for landowners that help manage risk and profit for the farmer.
Share This:
0 Comments