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Macon, IL | Mine is based on average county yield and RMA insurance price X a factor.
Factor depends on quality of ground. So for average ground it is something like this. (Say 38% for factor-that is what you negotiate)
Average County Yield=210
RMA Price=$3.90
Rent Factor=.38
210 x $3.90 x .38=$311.22
I like it because if I screw up marketing-I don't cost landlord. If I do a better than average job-I make more. If I screw up production its on me. If I do a better than average job I make more.
Generally very fair. We have experience the good and bad years together. I got burned once when input prices were high (after 2012 drought in $6 corn era) and I made out really well once-landlord got burned when prices fell late in year. But averaging it out has been very fair.
If you want to make it even better based on rotation do the same thing above for beans. Then divide each by two to average corn and beans together.
Landlord does all tile repair/waterway upkeep. All inputs are on me. Does have a fertility clause-must be same when I leave as was when I got the farm.
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How do you work a flex rent?
