Digging deeper into land leases

Just over 60 percent of U.S. land in farms are owner-operated, according to the 2017 Census of Agriculture. The national share of farmland that is owner-operated has been relatively stable over the past 50 years, with a noticeable decline during the farm crisis of the 1980s. That means that about 40 percent of U.S. farmland is rented.

There are number of different ways that individuals can rent farmland, but most land leases fall in one of three categories. The categories are cash lease, crop share lease and flexible lease.

Cash leases are common and based on an agreement between the landowner and tenant on annual rental rates. Crop share leases are based on production yields rather than a predetermined rental rate, and operating expenses are shared between the landlord and tenant. Flexible Lease agreements allow for the risk-and-reward sharing of a crop share lease, without the tracking and sharing of crop production expenses or the division of crops or crop revenue.

Landowners and farmers can learn more about the various lease types, trends and legal protections available with farmland leasing by participating in the Purdue University Extension virtual workshop “Digging Deeper into Land Leases.”

Many times, lease terms must be negotiated that match expectations for both landlords and tenants. The current volatility of ag inputs is another factor in discussions between the involved parties. The Purdue Land Lease Team has developed this program that address many questions concerning land leases.

This virtual workshop will be offered at two different times including Tuesday, Dec. 6 from 6:30 to 8:30 p.m. and Wednesday, Dec. 7 from 10 a.m. to noon. Please consider registering for the session that best fits your schedule.

Todd Janzen, an attorney with Janzen Ag Law, will present the legalities of having an effective land lease, along with challenges associated with terminating a lease. Purdue Extension educators will also discuss the following topics:

• Identifying the various lease tools available;

• Evaluating the pros and cons of common lease types; and

• Learning about farm land leasing trends.

The registration fee for this workshop is $25. Individuals wanting to participate can sign up at https://tinyurl.com/Digging22 The deadline for registration is 24 hours before each session. The Purdue Land Lease Team will send an e-mail to the e-mail address you provide with the link to connect from your home computer, tablet or smartphone.

Visit www.extension.purdue.edu/putnam or contact the local office at 653-8411 for more information regarding this week’s column topic or to RSVP for upcoming events. Office hours are Monday through Friday from 8 a.m.-noon and 1-4 p.m. Evening and lunch appointments are available, upon request. It is always best to call first to assure items are ready when you arrive and to RSVP for programs.

Upcoming Events

Nov. 24, 25 – Extension office closed for Thanksgiving

Dec. 1 – PARP and outlook meeting, 9:30 a.m., register at https://tinyurl.comPutPARP22

Dec. 5, 7, 9, 12, 14 – Managing for Today and Tomorrow webinar series, 10 a.m., $25, register at https://tinyurl.com/M42AT

Dec. 5 – Junior Leader officer webinar, 7-8:30 p.m., https://bit.ly/JrLdrOfficers

Dec. 6 – “Digging Deeper into Land Leases” webinar, 6:30 p.m., $25, register at https://tinyurl.com/Digging22

Dec. 7 – “Digging Deeper into Land Leases” webinar, 10 a.m., $25, register at https://tinyurl.com/Digging22