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Jim Meade / Iowa City
Posts: 2,462
Registered: ‎04-30-2010
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Have You Started To Roll Back Rents?

"Summary

Price in the high $4.00 range for corn and high $10 range for soybeans are being projected for next year. Much more will be known about price levels once clearer expectations of 2013 corn and soybean yields are reached. If prices are in the high $4.00 range for corn and $10 range for soybeans, returns will be lower than in recent years. As a result, cash rent levels may need to be re-evaluated, particularly for situations in which the current cash rent is above average.

Issued by Gary Schnitkey
Department of Agricultural and Consumer Economics
 University of Illinois"

 

How do you go about negotiatiing a reduction in land rents?  If you are the landlord, do you initiate it with a lower price?  If you are a tenant, do you go in with numbers to show why you can't pay as much?  

 

According to this story, a lot of rent is already about break even.  It make you wonder why the land is rented at all if the farmer can't make money.  There may be very little slack so a reduction in rent may be essential to avoid losing money.

 

http://farmdocdaily.illinois.edu/2013/07/returns-and-cash-rents-given-prices.html