NW Illinois Stephenson county | What happens if corn prices are $7 in the spring and $3 in the fall and renter does not contract any spring price? Bonus?
What happens if corn prices are $7 in the spring and $3 in the fall and the landlord suggests contracting some I spring, but renter does not? Bonus?
What happens if corn prices are $4 in the spring and $7 in the fall? and renter contracts a lot in the spring? Bonus?
What happens if corn prices are $4 in the spring and $7 in the fall and renter contracts a lot in the spring but has bad yields and has to buy corn to fill contracts? Bonus?
Crop insurance may help ease the burdens in these scenarios, but what if renter does not buy crop insurance to mitigate risks for what ever reason. How is landlords risk accounted for? Ultimately 50/50 spreads the risks to both with each doing their own selling. In other words I don't know how you could make it work. Either way land owner needs to pick a renter with best cropping history and the best cash reserves to survive a bad year. If land owner wants to reduce his risks, that really sucks for any young farmer with little history. Just remember land owner has increasing costs like insurance and real estate taxes. And not every land owner has no debt on the land. Just some food for thought
Edited by Jim Dandy 2/8/2019 14:12
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