Determining a Reasonable Crop Land Rental Rate
Monday, March 23, 2020
As spring approaches, many landlords and tenants are reviewing their crop land rental arrangements to determine equitable rates.
“Often, people use what others are charging or paying in the local area," says Dean Dyck, farm business management specialist at the Alberta Ag-Info Centre. "Following this approach has pitfalls because the rate may not be reflective of the soil productivity on the farm, or there may be a difference between what was rumoured and what was actually paid.”
Ultimately, land rental agreements are pivotal to a producer’s success, particularly as changes in prices and yields from year-to-year affect profit and the renter’s ability to pay.
Posted in:
Agriculture