2017 Cash Rent Leases

We are starting to receive a lot of calls from landowners regarding cash rental rates and terms for 2017. Nearly all of our cash rent leases have been terminated either by us or by the tenant. All indications are that tenants want to remain on the property for 2017 but need adjustments to rental rates and terms for next year. There will be significant pressure to reduce rental rates. Depending on how rental rates have been adjusted over the past several years will determine how much, if any, adjustment is necessary. Overall, rental rates will likely come down in 2017 but by how much will vary greatly by farm. As a company we will be negotiating 2017 rental terms upon completion of the 2016 harvest and into early 2017. Yields are expected to be very high but commodity prices are very low. Ultimately both landowners and tenants will have to find some common ground and come to terms with the current agricultural economic environment. We look forward to working with our clients and tenants over the next several months and are hopeful that rental terms can be achieved that are fair to both parties. We are also happy to discuss the rental and land market with anyone wanting some assistance or considering professional farm management.We are starting to receive a lot of calls from landowners regarding cash rental rates and terms for 2017. Nearly all of our cash rent leases have been terminated either by us or by the tenant. All indications are that tenants want to remain on the property for 2017 but need adjustments to rental rates and terms for next year. There will be significant pressure to reduce rental rates. Depending on how rental rates have been adjusted over the past several years will determine how much, if any, adjustment is necessary. Overall, rental rates will likely come down in 2017 but by how much will vary greatly by farm. As a company we will be negotiating 2017 rental terms upon completion of the 2016 harvest and into early 2017. Yields are expected to be very high but commodity prices are very low. Ultimately both landowners and tenants will have to find some common ground and come to terms with the current agricultural economic environment. We look forward to working with our clients and tenants over the next several months and are hopeful that rental terms can be achieved that are fair to both parties. We are also happy to discuss the rental and land market with anyone wanting some assistance or considering professional farm management.We are starting to receive a lot of calls from landowners regarding cash rental rates and terms for 2017. Nearly all of our cash rent leases have been terminated either by us or by the tenant. All indications are that tenants want to remain on the property for 2017 but need adjustments to rental rates and terms for next year. There will be significant pressure to reduce rental rates. Depending on how rental rates have been adjusted over the past several years will determine how much, if any, adjustment is necessary. Overall, rental rates will likely come down in 2017 but by how much will vary greatly by farm. As a company we will be negotiating 2017 rental terms upon completion of the 2016 harvest and into early 2017. Yields are expected to be very high but commodity prices are very low. Ultimately both landowners and tenants will have to find some common ground and come to terms with the current agricultural economic environment. We look forward to working with our clients and tenants over the next several months and are hopeful that rental terms can be achieved that are fair to both parties. We are also happy to discuss the rental and land market with anyone wanting some assistance or considering professional farm management.