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Flex Rent
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redoak
Posted 1/17/2016 06:25 (#5041575 - in reply to #5041561)
Subject: Flex rent = high cost share cropping


sw ontario
obie_iaffa - 1/17/2016 06:50

Probably needs to be around $150-$175 if you really want a flex rent to work. Problem I've seen with most flex rents is the landowner wants a base that's top dollar for the area and then the potential for a cherry on top if prices and/or yields rise. Might as well call that a bonus rent.


Is these flex rents no more than a glorified share crop agreement with a garunteed base price. Just looks like a lot of paperwork too set a rent price. Unless there is more money in share cropping / flex lease why would LL want the hassles? I expect most flex leases are at full rent + bonus clause

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