Flexible Cash Lease Calculator Available from OSU
Barry Ward, Ohio State University Production Business Management Leader, has developed a flexible cash lease calculator for farmers and landowners. The calculator is available as a Microsoft Excel worksheet:
This flexible cash lease tool is intended to help landowners and tenants agree on terms of their flexible cash lease. Unlike other tools available at other schools, this tool allows the user to do more than just flexing for price and yield. This tool includes the opportunity to input costs of inputs that would affect the terms of the lease.
The Input Page is the section of the calculator where the user inputs their particular production numbers. This page has several different sections where user input is required for an accurate estimation of a flexible rent. The information you need to have available to use the calculator includes: previous rent information, yield history, fertilizer input costs, chemical input costs, diesel input costs, seed input costs, and any other relevant input costs.
The Output Page documents four different methods of calculating your flexible cash rent. The different methods include flexing for price only, flexing for price and yield, flexing for price and input costs, and flexing for price, input and yield. In all four methods, the Total Rent per Acre line is the suggested flexed rent per acre for the land for the end of the growing season. Choosing which method to decide rental rates from will come from negotiation between land owner and tenant.
Podcast available here: