so you’ve inherited a farm, now what · so you’ve inherited a farm, now what? jim jansen...

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So You’ve Inherited a Farm, Now What?

Brought to you by:

In cooperation with

This material is based upon work supported by USDA-NIFA under Award Number 2015-49200-24226.


Allan VyhnalekFarm Succession & Transition

Email: [email protected]

Phone: (402) 472-1771


Jim JansenAgricultural Economist

Email: [email protected]

Phone: (402) 261-7572


This material is based upon work supported by USDA-NIFA under Award Number 2015-49200-24226.


Items to be discussed:• What is your land worth? – A look at Nebraska land values• How do you appraise your land, and how do you find an appraiser?• How you own land determines what you can do with it• Communicating with family and what to do when things don’t go as

planned• What to do if you choose to sell the ground• What to do if you keep the ground• Cash rent, trends, and setting a starting rental rate• How will your farm be managed?• Written lease provisions you should consider


WHAT IS YOUR LAND WORTH?

1© 2017 UNL Land Management Program

Jim Jansen & Allan VyhnalekAll Rights Reserved.


Disclaimer

• Land values and rental rates shown and discussed in this presentationare excerpts from the UNL Nebraska Farm Real Estate Market Survey.

• Land values and rental rates presented in this presentation are averagesfrom these surveys. Actual land values and rental rates may varydepending upon the quality of the parcel and local market for an area.


Nebraska 2017 Land Market Presentation Overview

• Land Values• Average Values and Percent Changes

• Cash Rental Rates• Average Values and Quality Ranges

• Agricultural Farmland Leases• Lease Arrangement Trends• Setting Cash Rental Rates


Nebraska Farm Real Estate Survey

• Annual survey conducted since 1978 of Nebraska agriculturalappraisers, professional farm managers, and bankers engaged in theland industry.• Preliminary results for land values and rental rates published the second week

of March.• Full report published the following June.

• Nebraska Farm Real Estate website full access to these resources:http://agecon.unl.edu/realestate


Nebraska Agricultural Statistics Districts




Nebraska Land ValuesLand Averages and Annual Percent Changes


Nebraska Agricultural Average All Land Values – Feb. 1, 2017

North$1,170/ac

-6%Northwest

$755/ac-8%

Southwest$1,745/ac

-11%

Central$3,385/ac

-10%

Northeast$5,505/ac

-8%

East$6,395/ac

-9%

Southeast$4,880/ac

-14%

South$3,875/ac

-9%

State$2,820/ac

-9%


Historical Nebraska Average Land Value & Corn Price 1978-2017


Dryland Cropland (No Irrigation Potential) Average Value – Feb. 1, 2017

North$1,560/ac

-5%Northwest

$715/ac-4%

Southwest$1,710/ac

-13%

Central$2,785/ac

-14%

Northeast$5,410/ac

-6%

East$5,790/ac

-9%

Southeast$4,285/ac

-12%

South$3,045/ac

-15%

State$3,145/ac

-9%




Dryland Cropland (Irrigation Potential) Average Value – Feb. 1, 2017

North$2,110/ac

-2%Northwest

$765/ac-3%

Southwest$1,720/ac

-5%

Central$3,220/ac

-16%

Northeast$5,980/ac

-11%

East$6,455/ac

-10%

Southeast$5,390/ac

-16%

South$3,750/ac

-13%

State$4,225/ac

-12%


Grazing Land (Tillable) Average Value – Feb. 1, 2017

North$1,170/ac

-12%Northwest

$530/ac-6%

Southwest$975/ac

-9%

Central$2,155/ac

-12%

Northeast$3,665/ac

-7%

East$3,765/ac

-14%

Southeast$2,780/ac

-13%

South$2,040/ac

-9%

State$1,335/ac

-11%


Grazing Land (Nontillable)Average Value – Feb. 1, 2017

North$705/ac

-5%Northwest

$465/ac-3%

Southwest$820/ac-10%

Central$1,685/ac

-12%

Northeast$2,230/ac

-10%

East$2,495/ac

-11%

Southeast$2,005/ac

-9%

South$1,500/ac

-11%

State$895/ac

-8%


HaylandAverage Value – Feb. 1, 2017

North$1,370/ac

-6%Northwest

$795/ac-11%

Southwest$1,485/ac

-13%

Central$2,170/ac

-16%

Northeast$3,295/ac

-4%

East$3,090/ac

-3%

Southeast$2,680/ac

-4%

South$2,160/ac

-8%

State$1,815/ac

-8%




Gravity Irrigated CroplandAverage Value – Feb. 1, 2017

North$3,835/ac

-3%Northwest$2,580/ac

-13%

Southwest$4,155/ac

-5%

Central$6,195/ac

-6%

Northeast$6,890/ac

-5%

East$7,640/ac

-6%

Southeast$6,615/ac

-10%

South$6,020/ac

-4%

State$6,070/ac

-6%


Center Pivot Irrigated CroplandAverage Value – Feb. 1, 2017

North$4,150/ac

-5%Northwest$2,815/ac

-14%

Southwest$4,510/ac

-15%

Central$6,885/ac

-9%

Northeast$7,445/ac

-6%

East$8,700/ac

-8%

Southeast$7,820/ac

-15%

South$6,700/ac

-7%

State$6,295/ac

-9%


Rating of Factors Influencing Agricultural Land Values in 2017


HOW DO YOU APPRAISE YOUR LAND?




Appraising land

• What is an appraisal?• An appraisal is professional appraiser’s opinion of market value on a property

such as land, buildings, or a farm.

• Why get an appraisal?• To determine the current market value of the inherited farm and understand

how local economic and market forces influence real estate in an area.• Gain perspective on the type of land and value associated with different

improvements.• Understand the value associated with improvements such as barns, machine

sheds, or irrigation equipment may be physically depreciated or functionallyobsolete.


How much does an appraisals cost?

• What factors influence the cost of appraisal?• Availability of certified general agricultural appraisers serving a region.• Size and geographical location of land.• Kind of improvements made to the farm such as buildings or livestock

facilities.

• What does an appraisal typically cost?• An 80 to 160 acre parcel appraisal may cost between $1,500 to $2,500 or more

depending upon number of improvements.• Mid-sized ranch appraisals can cost $5,000 or more depending upon the

configuration of the ground (grazing paddocks, livestock watering systems, orlivestock working facilities).


How to find an appraiser• Appraisers are licensed to preform appraisals in Nebraska.

• Public listing of appraisers can be found at: http://www.appraiser.ne.gov/

• Select Appraiser Listing on the website and then click Appraiser Listing/Nebraska County Map to display interactive map to locate an appraisal professional.


How to find an appraiser or land professional• The American Society of Farm Managers and Rural Appraisers (ASFMA) is an association of

professionals specializing in farm & ranch management and land appraisals.• Members can be found at http://www.asfmra.org/• Select Find a Land Expert on the website to display a searchable database of members .




Qualities of a professional agricultural appraiser

• To preform an agricultural land appraisal theappraiser needs to be licensed in Nebraska:• A certified general appraiser license is required to

preform land and farm appraisals.• Define out the scope of work (legal description of the

property, number of acres, types of improvements) priorto contacting a professional.

• Visit with several appraisers to get a feel on his or herprofessional competency in preforming an agriculturalappraisal, cost of service, and geographical knowledge.

• Seek out recommendations from prior clients or industryprofessionals.


HOW IS YOUR LAND OWNED?


Types of Ownership

• Fee Simple

• Multiple Owners

• Joint Tenancy• Tenancy in Common


Fee Simple Ownership

• One owner – one name on the title

• This name can also be a limited liability entity, partnership, corporation, ortrust

• While the LLE might have several members, the entity as an individual ownsthe land




Joint Tenancy

• Joint tenancy – separate titling• “Rights of Survivorship” Survivor takes it all – interest passes to other owners

of property• No probate is needed• Have immediate access upon death• How do you know?• Title must say joint tenancy with ROS, otherwise it defaults to TIC

• Joint tenancy assumes equal ownership• For example, joint tenants cannot own 70% and 30% respectively, they each own 50%


What does it Mean - JT?

• You and your sister own a 100-page book; each of you owns 100% ofthe book…is that possible?


Pitfalls in JT

• If you list a joint tenant and you pass away• 100% ownership goes to the JT, but…• Only 50% of the property gets a step up in basis because you only had 50%

actual ownership• Unless you can prove otherwise, 100% of the value of the property is included

in the valuation of your estate

• JT w/ ROS has some disadvantages…


Example• You and a sister purchase land worth $100k

• You and your sister are both listed on the title as jointtenant w/ROS

• You die…the land has appreciated to $120K

• Your sister gets 100% ownership of the cabin, and$120K is added to the value of your estate unless yourestate can prove that sister paid for 50%




Example

• Your sister decides to sell the land

• She does not pay capital gains on the step-up portion of the half passedby you

• She does pay capital gains on the half she owned at cost or $50K

• The new basis is $60K SU + $50K investment

• When sold: $120K - $110K = $10,000 capital gains


Tenancy in Common

• Tenancy in common – spouses, family members• May have issues with creditor claims• Upon death, interest passes to owner’s heirs• Have distinct and separate interest• Right of possession is undivided• Absolute right of partition for sale• Separate interest means you could have 40% interest, another sister has 30%

and a brother has 30%• If you pay 50% of the expenses, and the land sells, you could receive 50% of

the sale even though you only had 40% interest


Problems with TIC

• You or others can sell your interest in the land to another party whichmay cause unintended partners

• Your interest or another’s could be garnered by creditors as payment• Pretty rare, they don’t want partners in land either

• If you get divorced, your spouse can take 50% of your interest

• If a spouse remarries, their new partner has a claim against the 50%you just lost


Tenancy in Common

• You and your sister own a 100-page book, tenancy in common

• Each of you actually own 50% of the book or 50pages…independently…the question is, which 50 pages?




Accounts and Gifts

• If you own land worth $150K, and you decide to put your sister’sname on the title…

• You will have generated a $75K gift…

• If you list another on a bank account…• There is no gift made, until the other party tries to withdraw funds• As long as it’s under the annual gift exclusion, no problems


Joint or Common Tenancy…which is best?

• Depends on your objectives

• Tenancy in common may exist in any proportion

• Joint tenancy must have equal shares

• What happens if one party gets into trouble?• Creditors can move against ownership

• If one party passes, what happens to the property?• You could own interest in property with people you don’t like…


Other Titles• Life estate and remainder

• Pass ownership future interest of property to another• Hold onto rights to rents and profits, possession, and cost of maintenance.• Cannot sell or waste the property• No requirement for probate• Triggers a gift tax statement• Transfers at cost basis with no step-up; tax problems?


Life Estate• Is the transfer of interest from one party to another…

• … to A, for life, then to B

• Remainderman – someone that has future interest in property, but not present interest• No power to change, sell, gift, or other actions typical of fee simple

ownership

• Life tenant can:• Use• Grow crops• Garner profits• Even sell…with severe limitations to the buyer…• Cannot waste the property




Life Estate

• Waste – any action that would adversely affect the nature or quality ofthe remainderman’s future interest in the property• Destroy fields• Fail to maintain structures• Fail to pay taxes leading to seizure

• The remainderman can bring suit against the life tenant for specificwaste actions, but not general or non-specific diminution of theproperty


Life Estate

• Can use to bypass generations. Consider…

• Paul and Mary are siblings. Paul decides to give life estate to Maryfor his house, and upon Mary’s death, the property goes to Paul’schildren• Paul’s kids are the remaindermen• Mary has life estate• Known as pur autre vie


Life Estate

• May not fully protect real estate from nursing homecosts• How long from life estate to Medicaid?

• If remainderman dies, fee interest must go throughtheir estate

• What about divorce?

• What if property is to be sold?


Why is this Important?• How you own land dictates what you can do with it

• You inherit land TIC with family and they want to selltheir interest, what can you do?• Buy their interest• Force partition• Roll the dice and hope for the best

• TIC and JT decisions• Who decides on what happens to the ground?• What if one partner chooses not to pay their portion of taxes?• What if one sibling gets into serious legal trouble?• What if one sibling is also farming the ground?

• Recall that when you inherit ground, you also get allliens against it as well




Other Types of Structures

• Land can be “owned” in• Trusts• Limited liability entities• Family limited partnerships• Limited partnership• General partnership• Corporations• Any portion of the above

• 50% to an individual• 20% to a Charitable remainder trust• 30% to a limited liability farming entity


Wills and Trusts

• The will and or trust may dictate how you get to manage the land

• …or when you even get the land

• …who the trustee is

• …how you or others may dispose of interest

• …who or when you can sell

• …who you can rent to and at what terms

• …being in a trust and managing land can be very complicated


Durable and Health Care Powers of Attorney

• Grant of power to another to look after assets and manage affairs, make health care decisions

• Anticipates possibility of incompetence: avoids need for competency hearing or approval of guardian

• Statute defines powers (plenary – complete, unqualified)• Should also include express powers for tax returns, life insurance matters, making gifts,

transferring property into trust, accessing safe deposit box, dealing with retirement plans and Social Security

• May be contingent or present• Contingent – effective only upon incompetence• Present – effective when executed and continues in spite of incompetence


Powers of Appointment• Useful tool for postponing decision as to ultimate disposition of an asset; allows post-mortem

modification of plan• Circumstances may change • Unforeseen events occur• Power of Appointment survives death, unlike power of attorney

• Used in trusts and wills

• Example: Ted gives farm to Kathy, his wife, for her lifetime, with the power to direct in her will how the farm should be divided among their children after her death• E.x. They want it to go to the “farming” child, but do not yet know who that is




Powers of Appointment II• Different kinds of Powers of Appointment

• General Power – Kathy has power to appoint anyone, including herself • Special Power of Appointment - Kathy can appoint one or more of their children• Testamentary Power – Kathy can appoint only in her will• Collateral Power – Ted gives farm to Kathy for life and power to appoint to their son John

• Taxation of Powers of Appointment can be complicated• General powers usually included in taxable estate of recipient of power (Kathy); some

exceptions


Thoughts on Power of Attorney

• As the holder of Power of Attorney or Appointment, you have a hugeresponsibility to manage and maintain the property

• In many cases, wills, trusts, and POA’s don’t provide you with salary,and management can take considerable time and effort

• You may be under the microscope regarding your actions


Communications, family relationships, and having a plan for the land


Choices, Choices, Choices

• Sell!

• Keep in family?• Keep and farm it?• Keep and rent it?• Use land manager?

• The parties involved need to agree on that future




Communication - Important

• When done with the process – are you still going to have a family?

• Most peoples’ goal is to hold the family together(?)• Don’t make that assumption – get that commitment

• Best way is to be open and clear with communications

• Who participates in that discussion?

• Put all options on the table


Communication - continued

Consider using some sort of family meeting process

• Schedule meeting – not at major Holiday (if possible)• Not at Grandma’s kitchen table (family dinners)

• Will probably take more than one meeting

• Take notes, record the conversation

• Be sure to include off farm family


Communication - continued

Be aware of the sweetheart deals

• Surprises cause problems (story about Grandma and pivot, or on-farm brother)

• Get both sides of every story!


Communication - continued• Listening is the Key!

• (Practice) Make partner repeat what they thought you said – tobe sure that they heard you, or that you said what you wantedintended

• Make sure that you understand the other person’s point of view(seek first to understand, then to be understood)

• Spend plenty of time establishing the ‘goal’ or vision• Suggested up to 80% of the time with the vision – or what this will look like• Envision the Future! (Mark and Nancy story)




Communication

1. Allow all to have input* Know that there will be different expectations based on personality, age andparticipation

2. Then follow Golden Rule – ‘ye who has the gold makes the rule’


Generational ValuesUnderstanding generations

What are each generation’s defining characteristics?

Based on experiences during their formative years.


Communications, Generations, and Relations

• The living generations:• Matures: born 1910-1945• Baby boomers: born 1946-1964• Generation X: born 1965-1979• Millennials – (Generation Y): born 1980-2000• Generation Z: born 2001-???

• Not including in today’s discussion• Formative years just going to start





Where are the values?


Farming Heir

• Is that on-farm sibling being treated fairly?• Have they been fairly treated for the sweat equity that

they have contributed• Honest evaluation of this is key

• Avoid feelings of entitlement• Avoid mistrust

• Know that perception of input is different• For off-farm sibbling• For on-farm sibbling


More on the Situation…..Fair is not always equal

Typically, older generation thinks that fair means equal• Not necessarily true• Appropriate for on-farm heir to receive compensation for

sweat equity – (building maintenance, non-crop weed control,volunteer tree control, fence maintenance, terrace maintenance, rock ondriveway, etc.)• Thus the need to be fair• Also means that you may not divide asset equally


Fair vs. Equal

• Over the years, Mom and Dad (generational value)have tended to make the pie slices equal, but is thatfair?• In some cases – yes• Each situation is different – no one solution to this

discussion




Contribution = Compensation

• Four Children

• One farm

• Instead of dividing equally, @ 25% each consider

• Dividing by 5 or 20% each• Farm sibling receives fifth share for their contribution – actually receives 40%

• Others receive 20% instead of 25%


Is the family plan in place?

• Do you all agree?

• Is it OK to have a majority vote, or a unanimous vote?

• Remember one of my first statements – do we want the familytogether when this process is finished?

• When do you get help?• What can that help look like


Help with the family plans (when we don’t agree)

• Clergy

• Trusted family friend

• Other ag professional in community– like a banker

• Family Lawyer

• Mediation/Arbitration (see next slide)

• Lawsuit(s) – court will decide

List from less expensive to most expensive


Get help when needed:

Mediation/arbitration, or med/arb, is a process by which the parties try to mediate their dispute with a neutral person, the mediator. If they cannot agree on a resolution, then the mediator becomes an arbitrator.




More on arbitration…

• Is arbitration decision final?• In binding arbitration, the arbitrator's decision is final. It may not be

reviewed or overturned by a court except in very limited circumstances, suchas when fraud or misuse of power has been involved. In nonbindingarbitration, either party may reject the arbitration award and demand a trialinstead.


Get and use help when needed

• Rural response Hotline – for transition/transferquestions-1-800-464-0258• Make appointment for local clinic (example: Norfolk/monthly)


IF YOU SELL THE GROUND


Your Rights as a Landowner

• If you are fee simple – you can dispose of the land anyway you wish

• If you are a joint tenant, must have permission of all to dispose of theasset

• If you are tenant in common, you can force partition or sell off yourinterest

• Remember how you own the land makes a huge difference on whatyou can do with it




Tax Implications of Gifts and Sales

• If you received the land as a gift…• Upon sale, you will be responsible for capital gains tax using the original

purchase price• If you gift the land to another it is only worth original basis, but will be

considered at market for your lifetime exclusion (may require filing an IRSGift Form)

• If you received through the estate funnel• Upon sale, you will be responsible for the capital gains tax on the step-up (or

down) value• If you gift the land to another it is worth new basis, and will be considered at

market for your lifetime exclusion (may require filing an IRS Gift Form)


Your Options Under 1031

• Basically – IRS allows you to sell a property and reinvest the proceedsin a new property all while deferring capital gains tax• Generally have 180 days to complete the exchange• Must have 100% preservation of the equity for full deferral and must have a

like-kind replacement• Can’t sell farmland and buy a boat – not similar enough• Can sell farmland and buy unimproved property in another state or improved property as

an investment• See your tax and legal counsel when considering what does and does not quality for these

exchanges


Choosing to Keep the Farm in the Family


Nebraska Cash Rental RatesDryland CroplandRental Rates




Dryland CroplandAverage Rental Rates – 2017 Season(Nebraska Farm Real Estate Survey)

North$55/ac-8%

Northwest$29/ac-9%

Southwest$39/ac-7%

Central$88/ac-8%

Northeast$215/ac

-4%

East$195/ac

-3%

Southeast$155/ac

-6%

South$72/ac-10%


Dryland Cropland Rental Rate Ranges – 2017 Season(Nebraska Farm Real Estate Survey)

NorthH: $67/acA: $55/acL: $41/ac

NorthwestH: $41/acA: $29/acL: $23/ac

SouthwestH: $56/acA: $39/acL: $28/ac

CentralH: $120/acA: $88/acL: $68/ac

NortheastH: $265/acA: $215/acL: $170/ac

EastH: $235/acA: $195/acL: $155/ac

By RegionHigh Grade (H)Average (A)Low Grade (L) South

H: $115/acA: $72/acL: $56/ac

SoutheastH: $200/acA: $155/acL: $130/ac


Dryland Cropland Rental Rates – 2017 Season(USDA-NASS Survey – Sept. 8, 2017)


Nebraska Cash Rental RatesIrrigated Cropland Rental Rates




Gravity Irrigated CroplandAverage Rental Rates – 2017 Season(Nebraska Farm Real Estate Survey)

North$165/ac

-6%Northwest

$120/ac-4%

Southwest$170/ac

-6%

Central$220/ac

-4%

Northeast$255/ac

-7%

East$260/ac

-9%

Southeast$235/ac

-6%

South$205/ac

-5%


Gravity Irrigated CroplandRental Rate Ranges – 2017 Season(Nebraska Farm Real Estate Survey)






EastH: $300/acA: $260/acL: $235/ac


H: $250/acA: $205/acL: $170/ac



Center Pivot Irrigated CroplandAverage Rental Rates – 2017 Season(Nebraska Farm Real Estate Survey)

North$205/ac

-7%Northwest

$155/ac-9%

Southwest$200/ac-11%

Central$230/ac

-4%

Northeast$305/ac-12%

East$290/ac

-9%

Southeast$265/ac

-9%

South$225/ac

-6%


Center Pivot Irrigated CroplandRental Rate Ranges – 2017 Season(Nebraska Farm Real Estate Survey)






EastH: $325/acA: $290/acL: $245/ac

By RegionHigh (H)Average (A)Low (L) South

H: $270/acA: $225/acL: $195/ac





Irrigated Cropland Rental Rates – 2017 Season(USDA-NASS Survey – Sept. 8, 2017)


Nebraska Cash Rental RatesPasture and Cow-Calf Pairs Rental Rates


Pasture per AcreAverage Rental Rates – 2017 Season(Nebraska Farm Real Estate Survey)

North$25/ac-4%

Northwest$11/ac-8%

Southwest$22/ac-8%

Central$34/ac-6%

Northeast$62/ac-17%

East$53/ac-14%

Southeast$49/ac-9%

South$35/ac-5%


Pasture per AcreRental Rate Ranges – 2017 Season(Nebraska Farm Real Estate Survey)y)






EastH: $70/acA: $53/acL: $38/ac


H: $47/acA: $35/acL: $22/ac





Pasture per AcreRental Rates – 2017 Season(USDA-NASS Survey – Sept. 8, 2017)


Cow-Calf Pairs Average Rental Rates – 2017 Monthly(Nebraska Farm Real Estate Survey)

North$61.05/pair

-4%Northwest$35.05/pair

-3%

Southwest$51.65/pair

-10%

Central$53.30/pair

-9%

Northeast$53.20/pair

-11%

East$51.10/pair

-9%

Southeast$48.50/pair

-7%

South$47.30/pair

-4%


Cow-Calf Pairs Rental Rate Ranges – 2017 Monthly(Nebraska Farm Real Estate Survey)y)

NorthH: $75.80/pair A: $61.05/pair L: $46.75/pair

NorthwestH: $47.40/pairA: $35.05/pairL: $25.50/pair

SouthwestH: $61.45/pairA: $51.65/pairL: $41.70/pair

CentralH: $66.15/pairA: $53.30/pairL: $40.70/pair

NortheastH: $68.30/pairA: $53.20/pairL: $42.80/pair

EastH: $70.20/pairA: $51.10/pairL: $44.10/pair


H: $58.10/pairA: $47.30/pairL: $38.80/pair

SoutheastH: $65.60/pairA: $48.50/pairL: $41.15/pair


Agricultural Farmland Leases Setting Cash Rental Rates




Types of Cropland Leases

• Crop Share: landowner receives percentage of actual crop yield aspayment for leasing the agricultural land to tenant. Landowner mayshare input and production costs of raising the crop.

• Cash Lease: landowner receives an agreed upon cash paymentamount for leasing the agricultural land to the tenant.

• Flex Lease: landowner and tenant set a base cash rental rate whichcan flex upon actual crop yields, prices, or a combination of the two.


Setting Cash Rental Rates

• Setting a cash rental rate needs to be viable given the needs of thelandlord and tenant.

• Rates may be set according to:• Fixed amount per acre for all acres on the farm.• Fixed amount per cropland acre.

• Different methods may be used to calculate a rental rate, but allmethods must arrive at a viable rate.


Methods for Setting Cash Rental Rates

• Basic methods for estimating a cash rental rate:• Adjusting survey data.• Cash equivalent from crop share.• Return on investment.


Estimating Cash Rental Rates by Adjusting Survey Data

• Land rental rate survey data:• Evaluate available cash rental survey data to establish a baseline in the

landlord and tenant negotiation process.

• Average yields:

County Value Farm Value

County Rental Rate $150/ac.County Rent/Bushel

$1.50/bu.

Corn Yield 100 bu./ac. APH Yield x 115 bu./ac.

County Rent/Bushel

$1.50/bu. Farm Level Rent $172.50/ac.




Cash Equivalent From Crop Share

• Rent paid to landlord by tenant based off owner’s share of net returnsper acre.• Example 50/50 split:

Value Corn SoybeansYield (50% share) 80 bu./ac. 25 bu./ac.

Price/bushel x $3.60/bu. x $9.40/bu.

Income $288/ac. $235/ac.

Owner Expenses -$145/ac. -$85/ac.

Net Return to Owner (Effective Rent) $143/ac. $150/ac.


Return on Investment

• Multiply the estimated current market value by the expected rate ofreturn to determine the rental rate per acre.

Dryland Irrigated Cropland Cropland

Land Value $5,000/ac. $8,500/ac.

Rate of Return x 2.7-3.1% x 2.8-3.2%

Rental Rate per Acre $135-$155/ac. $238-$272/ac.

Farm

***Estimated net rates of return by land type are available in Table 5 of the Nebraska Farm Real Estate Market Highlights Report 2016-2017.


Return on Investment (continued)

• Selecting an appropriate market value and rate of return are key toestimating reasonable rental rates.

• Nebraska Farm Real Estate Survey provides estimated annual net ratesof return (returns after landownership expenses – i.e. land taxes).

• Summaries provided in the land report estimate net rates of return forirrigated cropland, dryland cropland, and grazing land.


Agricultural Farmland Leases Lease Arrangement Trends




Cropland Lease Arrangements in Nebraska by District

Source: UNL Nebraska Farm Real Estate Survey, 2015


Factors for Flexing Cropland Lease Provisions in Nebraska



Lease Provisions for Existing Farm Grain Storage as Part of Cropland Rental Arrangements



Expenses Paid by the Landlord to the Tenant in Common Crop Share Leases


Seed33 : 67 20 8040 : 60 44 5650 : 50 75 25

Fertilizer33 : 67 33 6740 : 60 84 1650 : 50 89 11

Chemicals33 : 67 28 7240 : 60 62 3850 : 50 77 23

Average Percent Distribution

- - - - - - - - - Percent - - - - - - - - -

Expense and Crop Share Lease Arrangement Landlord

Proportionally ShareLandlord Do Not

Proportionally Share




Prevalence of Crop Share Lease Arrangements in Nebraska



Marketer of Landlord’s Portion of Crop Produced Under Share Lease



Fillable PDF Leases – AgLease101.org

Click Document

Library

Fillable PDF

FormsLease

Publications


How Will The Farm be Managed?




Options for keeping

• Estimate what the potential income might be• Either from farming it yourself

• Does it fit the current operation? (next generation)

• Having it custom farmed• Some are having it custom farmed for a % of the production – to

motivate farmer to produce

• From rental• Crop share rent• Cash rent• Flexible cash rent


Professional Farm Manager• Consider use if Custom Farming or Renting

• Take care of managing the asset – especially valuable for absentee owners

• Charge between 6-12% of the rental rate as their fee for management (less onstraight cash rent, more on crop share rent agreements or custom farming)• Depends on what you are asking them to do

• In some cases, the service is very worth while


Options for keeping - continued

• A bit more about renting• Custom Farming – any questions?• Crop Share –(if you do not mind the marketing part)

• Still a very fair way to rent – for both landowner and tenant• Some landlords are taking a smaller percent and paying no input expenses

Questions?


Crop Share - continued

• Landlord and tenant share in the expense and share in the riskassociated with producing the crop

• Over history a very fair way to rent

• Crop share has lost popularity• Landlords do not like to:

• pay expenses• worry about marketing their crop





Typical (historic) provisions

• Landlord• Pays for % of fertilizer, insecticide, fungicide, and herbicide• % of Irrigation fuel or electricity• % of crop insurance• Irrigation System ownership costs

• (depreciation, insurance, repairs, taxes, interest)

• Land taxes and land maintenance



Typically

• Tenant pays for• % of fertilizer, insecticide, fungicide, and herbicide• % of crop insurance• All seed• All field operations• Transportation of landlord’s share of crop to designated location


Options for keeping - continued

• More about renting• Cash leases – two types – straight cash leases and flexible cash

leases• Straight lease means that you get paid XX dollars per acre for the lease per

year• Flexible lease means you that the actual lease is flexed by some variable –

usually price and/or yield• Consider putting lower and upper limits on the ‘flex’

Questions?


Written Leases and Lease Provisions




Written Lease – Must Have’s

• Date of entry and expiration

• Names and addresses of parties involved

• Legal description of the property to be leased• If multiple rates, have legal description of each partition

• Signatures

• What constitutes a “legal” written lease in Nebraska?


Terms

• Provisions for termination

• Provisions for reimbursement of soil amendments

• Acts of negligence that give rise to default

• Tenant’s rights during transfer or condemnation

• Tenant’s rights during termination or early release


Critical Issues• Hunting rights

• Allow or retain – must specify

• Stover• Allow harvest or retain• If harvest, how often• Will the rent increase with use

• Grazing• Allow, when, how many, animal/fencing needs

• Easements• Do they exist and in what terms


Written Leases – please!!

• No cookie cutter leases, but models do exist• aglease101.org

• Get legal help if needed

• Have lease reviewed by an attorney




Summation

• Land ownership is rewarding – if you put in the work

• Know your investment and what you expect the investment to do foryou

• Get help when you need it

• Get training – need to know what you don’t know

• Family communications can be challenging, but never ignored


Beginning Farmer and Rancher Resources


Resources Available to You

• Farm Credit Services• Young and Beginning Farmer Program

• 35 year or younger with less than 10 years of experience• Loans for land purchase, operations, insurance, and business activity• Up to $500/year for educational reimbursements• Youth in Ag loans up to $2500/student• College scholarship up to $2000


Resources•Nebraska Investment Finance Authority• Beginning Farmer and Rancher Program• Land purchase, equipment, machinery,

breeding livestock• Facilitates loans up to $520,000 to those

who do not already own a substantialamount of land with a net worth not toexceed $500,000




Resources - continued•Nebraska Department of Revenue• Provides a refundable tax credit against

sales and use taxes or income tax liabilityfor payers engaged in livestock productionwho invest $50K or more for expansion ormodernization• Tax credit is for 10% of the investment not

to exceed $30K


Resources - continued

• Nebraska Department of Ag• Beginning Farmer Tax Credit Program

• Offers a refundable tax credit to existing farmer/livestock producers who agree to rent to beginning farmers/ranchers

• Must be a three-year lease• Credit is equal to 10% of the cash rent or 15% of share rent (to include livestock)

• Personal Property Tax Exemption• Up to $100K of personal property used in production may be exempt from personal

property tax• Must apply by Nov. 1 of the year prior to credit sought



• Nebraska Department of Ag• Beginning Farmer Tax Credit Program - tenant

• Must be a resident of Nebraska• Must have farmed for less that 10 of the last 15 years• Net worth less than $200K• Must participate in an approved financial management program

• Beginning Farmer Tax Credit Program – owner• Must have ownership• If a close relative, must attend an approved succession workshop and the asset included in

the resultant plan


Resources• Farm Service Agency

• Must not have operated a farm for more than 10 years• Does not own more than 30% of the average size farm in the

county• Must substantially participate in the farm• Must meet other eligibility requirements• Loans

• Direct Farm Ownership - Max $300,000; 40 year term fixed int.• Direct Down Payment – 5% down, with the lower of

• 45% of farm price or• $667,000 or• 45% of appraised value to $667,000• FSA must not finance more than $300,000

• 20-yr fixed int.




Resources - continued• Farm Service Agency

• Loans cont.• Microloan – Max $50,000; 1-7-years fixed int.

• Use for initial start, expenses, family living, equip, livestock, etc. – geared for those with less farm management exp.

• Direct Operating - $300,000 max, 1-7-year term fixed int.• Use for typical operating expenses, livestock, equip, water

development, closing costs, training, refinance, etc.

• Direct Emergency – 1-7 year term non real estate, 40-yr real estate, fixed int. Max is lesser of• 100% of actual or physical loss or• $500,000• Use for qualifying natural disaster



• Farm Service Agency• Loans

• Farm Storage Facility – Max $500,000, 7-10 year term• Build/upgrade permanent facility for commodities

• Guaranteed Farm Ownership Loan - $1,392,000 max, 40-year term, interest is negotiated• Loan is made and serviced by commercial bank/credit union and guaranteed by FSA• Farm purchase, expansion, and land acquisition costs• 1.5% loan and servicing fee applies



• Farm Service Agency• Loans

• Guaranteed Operating – Max $1,392,000, 1-7 year term, interest is negotiated• Typical operating expenses, minor building improvements, land and water development,

living, refinance of debt• 1.5% service fee

• Guaranteed Conservation – Max $1,392,000, 20 year term, interest negotiated• For conservation practice development on an approved plan


Technical Assistance• NRCS – water, soil, and wildlife conservation programs with funded

assistance on desired activities• Legal Aid of Nebraska – works to provide guidance for estate and

transition plans, business organization, support programs, financialstatements, and other legal issues

• Center for Rural Affairs - works to provide guidance for estate andtransition plans, business organization, support programs, financialstatements, and other legal issues

• Nebraska Sustainable Ag Society – educational training and support tothose wanting to evaluate and plan the farm enterprise from asustainable view




Questions?

Extension is a Division of the Institute of Agriculture and Natural Resources at the University of Nebraska–Lincoln cooperating with the Counties and the United States Department of Agriculture.

University of Nebraska–Lincoln Extension educational programs abide with the nondiscrimination policies of the University of Nebraska–Lincoln and the United States Department of Agriculture.


Extension is a Division of the Institute of Agriculture and Natural Resources at the University of Nebraska–Lincoln cooperating with the Counties and the

United States Department of Agriculture.

University of Nebraska–Lincoln Extension educational programs abide with the nondiscrimination policies of the University of Nebraska–Lincoln and the United States Department of

Agriculture.



Loans for Your Farm or Ranch

Type of LoanPurpose

Maxim

um Loan

Amount

Rates and Term

s

Direct loans are made and serviced directly by

USDA Farm

Service Agency (FSA)

Direct Farm

Ow

nership

Go

These loans can help you purchase or enlarge a farm

or ranch, m

ake a down paym

ent on a farm

or ranch, construct a new

or improve an existing

farm or ranch building, pay

closing costs, and pay for soil and w

ater conservation and protection.

$300,000 Term

: Up to 40 years Interest rate: fixed

Direct Down

Payment

Go

These loans can help you purchase a farm

or ranch. They require a 5%

down

payment.

The lowest of the

following:

•45%

of the farm or

ranch

•Purchase price upto $ 667,000

•45%

of theappraised value upto $667,000

•FSA portion cannotexceed $300,000

Term: Up to

20 years Interest rate: fixed

United States D

epartment of Agriculture

35

http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/farm-ownership-loans/index





http://www.fsa.usda.gov/FSA/newsReleases?area=newsroom&subject=landing&topic=pfs&newstype=prfactsheet&type=detail&item=pf_20120330_farln_en_lngrnt.html





Microloans

Go

Microloans can be used

for all approved operating expenses as authorized by the FSA O

perating Loan Program

, including but not lim

ited to: Initial start-up expenses; annual expenses such as seed, fertilizer, utilities, land rents; m

arketing and distribution expenses; fam

ily living expenses; purchase of livestock, equipm

ent, and other m

aterials essential to farm

operations; minor farm

im

provements such as w

ells and coolers; hoop houses to extend the grow

ing season; essential tools; irrigation; and/or delivery vehicles. N

ote: Microloans are a

simplified, stream

lined program

requiring less paperw

ork and less farm

managem

ent experience than som

e other lending program

s.

$50,000 Term

: 1-7 years, depending upon purpose. Interest rate: fixed

Direct O

perating

Go

These loans can help you purchase livestock, equipm

ent, marketing costs,

land and water

development, pay closing

costs and borrower training

costs, refinance farm-related

debts, and pay for minor

real-estate repairs and annual operating expenses.

$300,000 Term

: 1 to 7 years Interest rate: fixed

36

http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/microloans/index




http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/farm-operating-loans/index





Direct Em

ergency

Go

These loans can help you if you suffered a qualifying loss caused by natural disasters that dam

aged your farming

or ranching operation. Em

ergency loan funds may

be used to restore or replace essential property and w

orking capital, pay all or part of production costs associated w

ith the disaster year, pay essential fam

ily living expenses, reorganize the farm

ing operation, and refinance certain debts.

The lowest of the

following:

•100%

actual orphysical losses

•$500,000

Ter m: 1 to 7

years (possibly up to 20 years) for nonreal estate purposes U

p to 40 years for physical losses on real-estate Interest rate: fixed

Farm Storage

Facility Loan Program

Go

To build or upgrade perm

anent facilities to store com

modities; cover the

structure and equipment

required to get fruits and vegetables w

ashed, treated, and packed along w

ith the cold storage that had been previously covered exclusively.

$500,000 Loan term

s are 7 years, 10 years, or 12 years, depending on the am

ount of the loan.

Youth Loans

Go

To establish

and operate

income-producing projects of

modest

size in

connection w

ith their participation in 4-H clubs,

FFA, and

similar

organizations. A Youth loan is

available to

persons betw

een the ages of 10 and 20 years.

$5,000 Term

: 1 to 7 years Interest rate: fixed

Guaranteed loans are m

ade and serviced by comm

ercial lenders like banks or credit unions.

37

http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/emergency-farm-loans/index





http://www.fsa.usda.gov/FSA/newsReleases?area=newsroom&subject=landing&topic=pfs&newstype=prfactsheet&type=detail&item=pf_20090817_insup_en_fsfl.html






http://www.fsa.usda.gov/FSA/webapp?area=home&subject=paca&topic=you





Guaranteed

Farm

Ow

nership

Go

These loans can help you purchase or enlarge a farm

or ranch, construct a new

or im

prove an existing farm or

ranch building, pay closing costs, refinance qualifying debt, and pay for soil and w

ater conservation and protection. There is a fee of 1.5%

of the loan amount.

The maxim

um loan

amount is adjusted

annually for inflation and is currently $1,392,000.

Term: Up to

40 years The interest rate is negotiated by you and your lender and m

ay be fixed, variable, or both

Guaranteed

Operating

Go

Guaranteed Operating Loans

(OL) m

ay be used to purchase livestock, farm

equipm

ent, feed, seed, fuel, farm

chemicals, insurance,

and other operating expenses. O

perating Loans can also be used to pay for m

inor improvem

ents to buildings, costs associated w

ith land and water

development, fam

ily living expenses, and to refinance debts under certain conditions. There is a fee of 1.5%

of the loan amount.

The maxim

um loan

amount is adjusted


Term: 1 to

7 years The interest rate is negotiated by you and your lender and m

ay be fixed, variable, or both.

Guaranteed

Conservation

Go

These loans can help you com

plete a conservation practice in an approved conservation or forest stew

ardship managem

ent plan.

The maxim

um loan

amount is adjusted


Term: Up to 20

years The interest rate is negotiated by you and your lender and m

ay be fixed, variable, or both.

38

http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/guaranteed-farm-loans/index











http://www.fsa.usda.gov/FSA/newsReleases?area=newsroom&subject=landing&topic=pfs&newstype=prfactsheet&type=detail&item=pf_20120306_consv_en_loans.html






Farm

lan

d L

ea

sin

g C

hec

klis

t A

dap

ted

by: R

obert T

igne

r, Tim

Lem

mo

ns, a

nd

Alla

n V

yh

na

lek, U

NL

Exte

nsio

n E

duca

tors

1

A w

ritten c

ontra

ct is

still a

n e

ssen

tial b

usin

ess p

ractic

e w

hen

lea

sin

g fa

rm p

rop

erty

. It forc

es d

eta

iled

co

nsid

era

tion

, com

mu

nic

atio

n, a

nd u

nd

ers

tand

ing

by b

oth

partie

s. It s

erv

es a

s a

han

dy re

fere

nce in

ca

se

d

eta

ils a

re fo

rgo

tten o

r the

re is

a d

ea

th o

f the te

nan

t or la

nd

lord

.

Th

e c

ontra

ct s

hou

ld e

nco

ura

ge

the m

ost p

rofita

ble

, long

-term

opera

tion o

f the fa

rm a

nd

be b

en

efic

ial fo

r b

oth

partie

s. A

re th

e re

turn

s p

ropo

rtiona

l to th

e c

on

tributio

ns b

oth

tena

nt a

nd la

nd

lord

make

to th

e

busin

ess?

Will th

e le

ase

pre

ve

nt o

r dis

co

ura

ge a

tena

nt fro

m o

pera

ting

the fa

rm in

the s

am

e w

ay a

we

ll-fin

an

ced o

wn

er-o

pe

rato

r wo

uld

run it?

Are

the b

est fa

rmin

g m

eth

od

s, c

onse

rva

tion

pra

ctic

es, a

nd

/or

enviro

nm

enta

l pra

ctic

es u

tilize

d?

Wh

at is

the p

lan fo

r nee

de

d im

pro

ve

me

nts

? E

ve

ry c

ontra

ct o

r lease

a

gre

em

ent w

ill one

da

y te

rmin

ate

; how

is te

rmin

atio

n to

be h

an

dle

d? W

hat m

eth

od

(s) w

ill be u

sed

to s

ettle

a

ccou

nts

?

Th

e fo

llow

ing

ch

ecklis

t will a

ssis

t tena

nts

and la

nd

lord

s to

co

nsid

er c

om

po

ne

nts

of a

we

ll-desig

ned le

ase

a

gre

em

ent. It is

advis

able

to h

ave

an

atto

rne

y fo

r one

pa

rty p

rep

are

the le

ase, w

ith a

revie

w b

y th

e a

ttorn

ey

for th

e o

ther p

arty

.

Pa

rties to

Lea

se

an

d D

es

crip

tion

___

Date

the le

ase

is e

nte

red

into

. _

__

Nam

es a

nd

ad

dre

sse

s o

f the la

nd

lord

and te

nan

t. _

__

Leg

al d

escrip

tion

of th

e le

ase

d p

rope

rty.

___

Sig

natu

res o

f the la

nd

lord

and

tena

nt.

Ge

ne

ral T

erm

s

___

Tim

e p

erio

d o

f the le

ase

, inclu

din

g b

eg

innin

g a

nd

en

din

g d

ate

s.

___R

enta

l am

ou

nt fo

r cash

lea

se; b

ase

rent fo

r flexib

le c

ash

lease

s, a

nd re

spe

ctiv

e s

ha

res a

nd

c

ontrib

utio

ns fo

r a c

rop-s

hare

lease

. _

__W

he

n a

nd h

ow

rent w

ill be p

aid

and

pe

naltie

s fo

r late

paym

ents

. _

__W

ha

t is th

e c

lause, if a

ny, fo

r au

tom

atic

renew

al o

f the le

ase

?

___P

rovis

ion fo

r carry

ing lia

bility

insura

nce

on th

e p

rop

erty

___In

surin

g th

e c

rop: u

nd

er c

ash le

ase

s, te

na

nt p

ays a

ll pre

miu

ms a

nd

receiv

es a

ll inde

mn

ities; u

nde

r c

rop

-sha

re, e

ach p

arty

ca

n in

sure

their s

hare

. _

__

Sta

tem

ent th

at th

e la

ndlo

rd a

nd

tena

nt d

o n

ot in

ten

d to

cre

ate

a p

artn

ers

hip

by e

nte

ring in

to th

e

ag

ree

me

nt. N

eith

er p

arty

will o

blig

ate

the o

ther fo

r deb

ts/lia

bilitie

s o

r dam

ag

es.

___C

ond

itions u

nd

er w

hic

h th

e te

na

nt m

ay o

r may n

ot s

ub

-lease th

e p

rope

rty. (A

lso

co

nsid

er h

untin

g

rights

, gra

zin

g s

talk

s)

___

Sp

ecify

min

era

l and

wa

ter rig

hts

. _

__

If tena

nt is

giv

en rig

hts

to fa

rm im

pro

ve

me

nts

(build

ing

s, b

ins, fo

r exa

mp

le) a

t wh

at re

nta

l rate

?

___

If land

lord

doe

s n

ot o

wn

all irrig

atio

n e

qu

ipm

en

t, how

rent is

adju

ste

d to

refle

ct th

at c

hang

e?

___

Pro

vis

ions fo

r land

ow

ner(s

) and te

na

nt(s

) rep

ortin

g o

f cro

p/la

nd/b

usin

ess o

pe

ratio

ns to

inclu

de

wh

at

these

repo

rts w

ill inclu

de

, how

, wh

ere

, by w

hat m

ean

s, a

nd h

ow

ofte

n th

is re

po

rting

will ta

ke p

lace.

Term

inatio

n

___W

he

n a

nd h

ow

the le

ase m

ay b

e te

rmin

ate

d a

nd re

qu

irem

ents

for n

otic

e o

f term

inatio

n?

___

Re

imb

urs

em

ent p

rovis

ions fo

r cro

p n

utrie

nts

, lime

an

d/o

r co

mp

lete

d fie

ldw

ork

upo

n te

rmin

atio

n o

f the

lease.

___

Acts

of th

e te

na

nt th

at w

ould

co

nstitu

te d

efa

ult o

f the le

ase

. _

__

Te

na

nt's

righ

ts if th

e p

rop

erty

is tra

nsfe

rred o

r co

nde

mn

ed d

urin

g th

e le

ase

pe

riod

. _

__

Re

imb

urs

em

ent p

rovis

ions fo

r a c

rop s

till in th

e g

rou

nd w

hen

the le

ase is

term

inate

d.

39

Op

era

tion

an

d M

ain

ten

an

ce

___

De

sire

d o

r pro

hib

ited fa

rmin

g p

ractic

es, in

clu

din

g ty

pes o

f ch

em

ica

ls th

at m

ay n

ot b

e u

sed o

n th

e

pro

pe

rty.

___

Pro

cess o

f me

asurin

g a

nd

ma

inta

inin

g s

oil fe

rtility a

nd

pH

leve

ls. (In

clu

de m

inim

um

req

uire

d a

mo

un

ts

of fe

rtility a

nd

rem

edia

l actio

ns)

___W

hic

h p

arty

is re

sp

on

sib

le fo

r co

ntro

lling

noxio

us w

eed

s?

___W

hic

h p

arty

is re

sp

on

sib

le fo

r ma

inta

inin

g fe

nce

s?

___W

he

ther th

e te

na

nt h

as th

e rig

ht to

make

imp

rove

me

nts

and b

e c

om

pen

sate

d fo

r impro

ve

me

nts

. _

__

Is te

na

nt re

sp

on

sib

le fo

r non-c

rop a

cre

s (fo

r exa

mp

le fo

r mo

win

g)?

How

is h

e c

om

pe

nsate

d fo

r that

wo

rk?

___W

ill the

tena

nt b

e re

quire

d to

ca

rry in

sura

nce to

co

ve

r co

sts

of m

itigatin

g h

is a

ctiv

ity –

like

an

accid

en

tal

ch

em

ica

l sp

ill?

___W

he

ther th

e te

na

nt h

as th

e rig

ht to

utiliz

e im

pro

ve

me

nts

ma

de

by th

e la

nd

lord

. _

__

Pro

vis

ions fo

r so

il-con

serv

atio

n p

ractic

es.

___

Sta

tem

ent re

gard

ing th

e e

xis

ting e

nviro

nm

enta

l sta

tus o

f the p

rope

rty a

nd

respo

nsib

ility to

min

imiz

e

activ

ities th

at m

ay c

au

se c

onta

min

atio

n.

___

Use

of n

on

-cro

pla

nd

, ga

rde

n p

lots

, trees, b

uild

ing

s, g

rain

bin

s, p

astu

re o

r oth

er a

reas n

ot re

nte

d fo

r c

ropla

nd

. _

__

Pro

vis

ion id

en

tifyin

g w

ho is

respo

nsib

le fo

r ma

inte

na

nce

on irrig

atio

n e

qu

ipm

ent o

r oth

er fa

rm u

se

asse

ts id

en

tified in

the

lea

se.

___

An

y p

rovis

ions fo

r the

co

mp

ensa

tion o

f the te

nan

t(s) fo

r co

nd

uctin

g im

pro

ve

me

nt(s

) or m

ain

tena

nce

on

th

e p

rope

rty o

r associa

ted

use a

sse

ts.

Lan

dlo

rd R

igh

ts a

nd

Go

ve

rnm

en

t Pa

ym

en

t

___Landlo

rd's

right to

ente

r the p

rop

erty

for s

pecific

purp

ose

s.

___Landlo

rd's

right to

a s

ecurity

inte

rest in

the c

rops o

r oth

er p

rovis

ions fo

r ensurin

g p

aym

ent.

___

Sta

tem

ent o

f wh

ich

pa

rty w

ill partic

ipate

in fe

de

ral fa

rm p

rog

ram

s, in

clu

din

g re

spo

nsib

ility fo

r elig

ibility

a

nd re

ceip

t of p

aym

en

ts.

___

Na

ture

of la

nd

lord

partic

ipatio

n in

ma

nag

em

en

t. Th

is m

ay re

late

to is

su

es re

gard

ing in

com

e a

nd

se

lf- e

mp

loym

ent, ta

xe

s, s

ocia

l se

curity

paym

ents

, and

esta

te p

lann

ing

.

Arb

itratio

n o

f Diffe

ren

ce

___

Pro

vis

ion th

at a

ny a

me

nd

me

nts

mu

st b

e in

writin

g a

nd

sig

ned b

y b

oth

partie

s.

___

Pro

ced

ure

for re

solv

ing d

isp

ute

s, in

clu

din

g th

e a

pp

lica

ble

sta

te s

tatu

tes.

Cro

p-S

hare

Pro

vis

ion

s

___

Ge

ne

ral a

gre

em

ent, s

harin

g o

f cro

ps a

nd te

na

nt's

co

ntrib

utio

n o

f ma

ch

inery

and

lab

or. E

ach p

arty

s

hou

ld s

hare

retu

rns in

the s

am

e p

rop

ortio

n a

s re

sourc

es a

re c

ontrib

ute

d.

___

Sh

arin

g o

f ope

ratin

g e

xp

en

ses, g

ene

rally

va

riable

exp

en

ses a

re s

hare

d in

the s

am

e p

erc

enta

ge a

s th

e

cro

p s

hare

; if there

are

adju

stm

ents

for n

o-till, c

usto

m a

pp

lica

tion

, limin

g o

r any n

ew

techn

olo

gie

s

ado

pte

d.

___

Sto

rag

e a

nd

/or d

eliv

ery

of la

nd

lord

s s

hare

of c

rops.

___

Co

mp

en

satio

n u

pon

term

inatio

n o

f the le

ase. (e

xa

mp

le: if te

na

nt p

aid

for a

nd a

pp

lied lim

e)

___W

ha

t record

s a

re to

be k

ept b

y w

hom

and

how

will th

is in

form

atio

n b

e s

hare

d.

1 Oh

io S

tate

Univ

ers

ity E

xte

nsio

n F

act S

heet, F

R-0

003-0

1, D

ona

ld J

. Bre

ece

, Dis

trict S

pecia

list, F

arm

M

ana

ge

me

nt, S

outh

we

st D

istric

t

For m

ore

info

rmatio

n:

http

://ww

w.a

gle

ase

10

1.o

rg/D

ocL

ib/d

efa

ult.a

sp

x#

Le

ase

Pu

bs –

Leasin

g P

ublic

atio

ns

http

://ww

w.ia

nrp

ub

s.u

nl.e

du

/live

/ec8

62/b

uild

/ec8

62.p

df - F

lexib

le L

ea

sin

g o

f Farm

land

h

ttp://a

gle

ase

10

1.o

rg/ - fo

r go

od g

ene

ral fa

rmla

nd

lease

info

rmatio

n

40

http://www.aglease101.org/DocLib/default.aspx#LeasePubs

http://www.ianrpubs.unl.edu/live/ec862/build/ec862.pdf

http://aglease101.org/

Cherry167 Holt

216

Custer222

Lincoln203

Morrill152

Knox282

Keith185

Rock154

Brown173

Gage264

Hall244

Chase191

Dundy178

Buffalo241

Otoe263

Clay260

York254

Dawson219

Kimball112

Cedar311

Frontier172

Platte285

Perkins195

Hayes201

Burt258

Blaine161

Cass268

Arthur141

Box Butte202

Boone269

Furnas188

Polk264

Butler268

Valley232

Antelope252

Saline240

Pierce252

Logan197

Harlan215

Thayer249

Dodge268

Dixon312

Adams245

Saunders251

Phelps240

Seward278

Howard226

Greeley226

Cuming291Garfield

206

Hitchcock173

Nance233

Fillmore265

Franklin224

Wheeler217

Webster215

Madison262

Wayne290

Nuckolls263

Colfax264

Red Willow181

Sherman226

Scotts Bluff161

Kearney236

Jefferson231

Boyd207

Lancaster234

Merrick231

Gosper219

Hamilton245

Stanton277

Richardson244

Sarpy203

Douglas235

Washington262

Sioux Sheridan

Garden

Dawes

Grant

Cheyenne

Loup

Banner

Hooker Thomas

Deuel

McPherson

Keya Paha

Pawnee

Nemaha

Thurston

Johnson

Dakota

Dollars/Acre280 +

236 - 280

186 - 235

<185

Unpublished

2017 Nebraska Irrigated Cropland Cash Rent Paid Per Acre

Source: USDA National Agricultural Statistics Service - Sept 8, 2017

Website: https://www.nass.usda.gov/Statistics_by_State/Nebraska/Publications/County_Estimates/ 41

Custer76

Lincoln51.5

Knox209

Keith46

Dawes28

Rock40

Gage155

Hall115

Chase47

Dundy40

Buffalo100

Otoe175

Clay151

York147

Dawson97.5

Kimball23.5

Cedar239

Frontier56

Platte202

Cheyenne34

Perkins49.5

Hayes55.5

Burt230

Blaine29

Cass205

Loup56

Boone173

Furnas69

Polk158

Butler188

Valley98.5

Antelope132

Saline140

Pierce188

Harlan79

Thayer126

Dodge210

Dixon248

Adams142

Saunders198

Phelps98.5

Seward162

Howard112

Greeley103

Cuming262

Hitchcock49.5

Nance146

Fillmore138

Franklin102

Wheeler96

Webster100

Madison194

Wayne238

Nuckolls132

Colfax205

Red Willow56.5

Sherman100

Kearney125

Jefferson132

Pawnee135

Boyd110

Lancaster159

Merrick122

Gosper77.5

Hamilton158

Stanton214

Nemaha201

Richardson212

Thurston240

Johnson142

Sarpy202

Douglas203

Dakota266

Washington220

CherryHolt

Sioux Sheridan

GardenMorrill

Brown

Grant

Arthur

Box Butte

Banner

Hooker

Logan

Thomas

Deuel

McPherson

Keya Paha

GarfieldScotts Bluff

Dollars/Acre175 +

121 - 175

61 - 120

< 60

Unpublished

2017 Nebraska Non-Irrigated Cropland Cash Rent Paid Per Acre



Holt33.5

Custer34.5

Sioux10.5

Lincoln19

Sheridan14

Garden13.5

Keith14.5

Dawes15

Rock26

Brown26.5

Gage47.5

Chase17.5

Dundy18

Hall39.5

Buffalo35.5

Otoe47

Clay32

York43.5

Dawson35.5

Kimball8.9

Cedar66

Frontier28

Platte56

Perkins19.5

Hayes19.5

Burt60.5

Blaine17.5

Cass47.5

Arthur16.5

Loup23

Box Butte12

Boone47Banner

9

Furnas28.5

Hooker14

Polk39

Butler52

Valley47

Antelope34

Saline48

Pierce73

Logan16.5

Thomas12.5

Harlan30.5

Thayer43.5

Dodge52.5

Dixon48

Adams40

Saunders51.5

Phelps38

Seward42.5

Deuel15

McPherson20

Howard40

Greeley43.5

Cuming73

Keya Paha24

Garfield24.5

Hitchcock20

Nance47.5

Fillmore37.5

Franklin32

Wheeler33.5

Webster40.5

Nuckolls45

Colfax66

Red Willow22

Sherman42

Kearney35.5

Jefferson45

Pawnee43

Boyd36.5

Lancaster44

Merrick55

Gosper35.5

Hamilton37.5

Stanton71.5

Nemaha51.5

Richardson45.5

Thurston66.5

Johnson47

Sarpy38

Douglas57.5

Dakota43

Washington58

Dollars/Acre55 +

40 - 55

25 - 39

< 25

Unpublished

2017 Nebraska Pasture Cash Rent Paid Per Acre


Cherry

GrantScotts Bluff

Morrill

Cheyenne

Knox

Wayne

Madison


so you’ve inherited a farm, now what · so you’ve inherited a farm, now what? jim jansen...

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