I ask because I don't know. But, can somebody from each state of the Midwest tell me what date is used for farmers to make their first cash rent payment? I know that in Iowa, the official date is March 1. But, is that the case for other states?
The reason I ask is because the talk is that the renegotiating of cash rental rates may be forced, come March 1, since the corn and soybean prices have fallen 5% since those original rental agreements were made in September. And for wheat, the market has fallen 7%.
Have you looked at the calendar lately? March 1 is right around the corner. Anybody getting nervous about missing that payment?
Thanks for helping me out.
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Cash rental agreements are a personal contract between landlords and producers. They can be due at any time the two parties agree on. No law that I know of that says it must be paid by a certain date.
What is due for most farmers on March 1 is their income taxes.......unless you pay quarterly. For most guys, those income taxes are much less than they have been in the past several years.
In Minnesota it is common for first half rent to be paid by March 1. But, as roarin says, a contract can say anything. I have one farm that got paid the first week of January of the next year because he always carried his crop to the following year and didn't want to double up on income. Since the death of both he and his wife we got back to current year with his family.
Some of the really high rents wanted the entire rent up front in March, that could make budgets tigher than a fiddle string, if they`re still sitting on alot of `15.
As the others have said - it's all over the place here too - but it is still common to have rent paid by May 1 - before property taxs are due .
Maybe some in the trade are anticipating a "wall of corn" hitting the market by March 1 rent day? Especially being as it`s mostly moved sideways since harvest? But there was a "wall of producers" sealing corn late last year, so some are in it for the long haul. With beans there were a few believing there would be a begining of the year rally, around here on the lucky day or two you got $8.50 cash, but since then it`s drifted to the $8.10 cash area.
Thanks for the responses. Looks like that March 1 date does apply to Iowa and Minnesota, at least.