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Jesup, IA | +1. Most landlords just want a "bonus rent". Market price plus more if things get better.
Seriously, my thoughts are that a base on a flex rent should be about 20% below a fixed rent, assuming you share 1/3 of any revenues above the base.
Ex: Fixed rent $250 on a farm that has an APH of 185 and current market is $3.50 NEW CROP corn
Or alternatively, if the landlord would accept $210 as a base, then you share all revenues above 185/$3.50 scenario. This includes any crop insurance proceeds and govt payments. Make sure your price calculation reflects something reasonable (my favorite would be an avg of the spring and fall crop ins price). But any price avg system would work. | |
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Flex Rent
