Ateam - 8/27/2024 07:25

A few local farms seem to be changing renters this year. Hearing more than usual. This is for farms that have been rented for years, not just farmers retiring. Wonder who is driving the changes, farmers or landlords. Anyways, I was approached by a local farmer looking to retire this year. He is proposing a cash rent plus bonus based off of fall crop insurance prices. This seems fair whether you carry insurance or not due to the fact that if fall price for crop insurance goes up then the board price for fall delivery is up since it is set in the month of October. He is taking bids based on this structure. The cash rent and bonus is to be bid by the farmer. Anybody do something similar? I hear of cash rent plus bonus contracts all the time but have never been involved in one. Looking for opinions and insight for the bonus structure. I can figure on my base cash rent price. Would guess bonus structure should be comparable no matter where you are if your base cash rent is reasonable.