How To Determine The Value of Farm Rental Ground – AG Matters
When it comes to renting farm land, how do you determine a fair price for both parties? There are lots of factors to consider, Cornell Cooperative Extension has some suggestions and a website that can help in establishing an amount.
Determining the price on farm land is not an easy task, "volatility in the market over the past few years complicates the situation." Bonnie Collins of CCE says communication is one of the biggest keys to a successful partnership.
Having discussion about and agreeing on the following should be considered; access to the property, equipment and housing usage, maintenance of the barns, sheds, fencing, and irrigation lines, property boundaries, restricted areas and water resources, taxes, rent payments and utilities.
For everyone's sake, write out a lease agreement with "all expectations are spelled out." Both sides should also be open to "modifications and allow for corrections of mistakes without destroying the relationship."
When it comes down to the "nitty-gritty" of setting a fixed price, A Landowner’s Guide to Leasing Land for Farming, is a good resource to use for starting.
SOURCE: Cornell Cooperative Extension - Bonnie Collins
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