Agricultural Economics Department
Date of this Version
1-23-2019
Citation
agecon.unl.edu/cornhuskereconomics
Abstract
In Nebraska, different types of rental arrangements are used on agricultural land. These arrangements commonly include crop share, cash lease, and cash lease with flexible provisions.
Crop Share: landowner receives a percentage of actual crop yield as payment for leasing the agricultural land to the tenant. The landowner may share input and production costs of raising the crop.
Cash Leases: landowner receives an agreed upon cash payment amount for leasing the agricultural land to the tenant.
Cash lease with Flexible Provisions: land owner and tenant set a base cash rental rate which can flex upon actual crop yields, prices, or a combination of the two. Final cash payment made to the landlord for leasing the agricultural land to the tenant may have premiums or discounts made to the base rate depending upon the agreements set up by the two parties.