Provide Reports Tenants can borrow a technique from professional agricultural managers who regularly make written reports available to their clients. It is obvious that a report on a crop lease-share is more important than a barleasing. It may be advantageous for a tenant with a barleasing to develop a form of abbreviated reporting, especially for landowners who have a strong interest in the productivity of the business. Sending photos to a landowner who is not close enough to regularly observe harvesting conditions is a very effective means of communication. Digital camera photos or video files can be easily transmitted via email, or images can be printed and mailed. Some tenants set up password-protected websites or only invite websites for individual owners to provide information such as soil maps, fertilizer tests and performance data. Differences in leasing agreements result from differences in land production capacity and improvements, contributions from each party, and personal goals of the tenant and landlord. Rental conditions must be reviewed regularly to keep them up to date. The lease also protects the legal rights of all parties involved. Multi-year leases encourage homeowners and operators to invest in long-term soil improvements and to preserve fertility and soil conservation structures. They also avoid the uncertainty of often establishing new relationships. To determine whether a lease is fair and fair to both parties, it is necessary to review the lease as a whole, rather than considering only certain provisions or parts of the lease.
One provision in the lease may be favourable to one party, while another may be more favourable to the other party, and both factors may compensate. Some agreements pay the custom trader a bonus for achieving certain planting date or yield goals. Others provide that instead of a cash payment, the farmer receives a percentage of the crop, usually between 20 and 25 per cent. This is sometimes called “net stock leasing.” When the custom operator assumes responsibility for the purchase and supply of plant inputs, the cash payment or share of the crop is generally higher. Publication FM 1823 (AgDM A3-15), Custom Farming: an Alternative to Leasing has more details. Some flex agreements offer a fixed price per bushel, multiplied by the average yield of maize for this field. (Example of maize: 1 times the average yield, i.e. 150 bushels per hectare, produces a cash rent of 150 $US per hectare.) This relieves the landowner of the risk of marketing and production and links the rental price to the production capacity of each field, which is good for the tenant. Owner Links In Iowa, a legal pledge right (created by state law) of the owner exists. The pawn tax applies regardless of whether the tenancy agreement applies to cash rent, flexible rent or the share of the crop. The legal right to pledge is a right of bet “on all crops grown on rented premises and on all other personal items of the tenant that have been used or preserved during the life and which are not exempt from execution,” and privileges the landowner to other security interests such as those of lenders.
The share of the crop is considered a flexible land use contract, in which the landowner and tenant distribute the income of the crops on the farm in a predetermined ratio or percentage.