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Flex Rent ?'s
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CentralILFarmer
Posted 11/10/2013 08:46 (#3435430)
Subject: Flex Rent ?'s


ECIL

What sort of flex leases do you guys suggest that limit the risk for the farmer? A lot of the ones I have learned about in school don't alow for much mistake in terms of hedging and forward sales.

I am thinking something like a reputable base rent, and then once ACTUAL gross income covers all costs + base rent + a small amount of $ in my pocket the rest of the income is shared 50/50. The LL would have to have faith in my farming and marketing skills if going off of the actual gross income from that farm.

Would anyone suggest any changes to this plan or another flex lease entirely? I know some use RMA yields and Crop Ins. prices, but typically we are way ahead of this particular county average in terms of yield.  

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