July 15, 2016
Cash Lease Workshops on Wednesday, July 27
Area farmers and landlords have two opportunities to attend a Landlord - Tenant Cash Lease Workshop on Wednesday, July 27. Nebraska Extension will be offering programs at 1:30 p.m. at the Firehall in Pender or at 6:30 p.m. at the First National Bank Northeast in Tekamah. These come at a critical time of year as September 1 is the deadline for landlords or tenants in a verbal leaseto notify the other of intentions to change or renegotiate provisions of the current lease or to terminate the lease for the following crop year.
Arriving at a fair cash rental rate is difficult when land and commodity prices are stable. However, throw in volatility for either of these variables... or for production costs... and the challenge just got even greater. Rising crop prices lead many landowners to seek higher cash rents while falling crop prices lead tenants to seek lower cash rents. Cash rental rates are probably one of the most cussed and discussed topics in crop production.
This program will help landlords and tenants establish and maintain a positive farm leasing relationship and deal with the volatility of their cash rental rates. Landlords try to be loyal to their tenants, yet want a fair return for the land asset. Tenants want to stay in business, yet feel the pressure to bid to keep the land base that they have been farming. It is very helpful if both the tenant and landlord can attend together.
Topics for discussion include:
• Trends in Farmland Values and Cash Rental Rates
• Types of Leases
• Flexible Cash Lease Rental Arrangements
• Good Landlord-Tenant Communications
• Developing a Fair Lease
• Modification to or Termination of Verbal and Written Leases
• Importance of Leases for Government Programs
• Other Topics as Time Allows, Including: Pasture Rental, Grain Bin Rental, & Farm Building Rental
Putting together the right lease isn't about what’s being discussed at the coffee shop, or what a survey of cash lease rates says. It’s about what fits both the landlord and tenant for their circumstance and situation. Attending this presentation will provide some basic concepts to work from as you and your landlord or tenant work out the details of your lease.
The free workshop is sponsored by Nebraska Extension, the Nebraska Soybean Board, and the North Central Extension Risk Management Education Center. Refreshments and handouts will be provided. Registration is requested by Friday, July 22. To register for the session in Pender, contact the Nebraska Extension office in Thurston County at 402.385.6041. To register for the session in Tekamah, contact the Nebraska Extension office in Burt County at 402.374.2929.
The workshops have been held at many locations across Nebraska for several years with over 3,300 attending. The majority of landlords and tenants have found the information to be helpful in improving communications, setting rental terms, and learning about the use of flex lease provisions. As crop budgets tighten, it is more important than ever to attend and learn the latest about leasing issues so you can make sure your lease is working for both the landlord and tenant.
Again, please preregister for this free program by Friday, July 22 and make arrangements with your landlord or tenant to attend together. For more information, please contact John Wilson, Extension Educator, at 402.374.2929 or email at jwilson3@unl.edu.