Flexible rental rate

Renting farmland sustainably requires sharing both the risks (of weather and markets), but also the rewards of farming. A long-term lease can include flexibility, in which the rent is renegotiated each year based on a formula that factors in local rental rates, the productive capacity of the land, the land investment contributions of the renter, and the price of crops, etc. In this way, the contributions of both parties are understood and valued as in a share-cropping agreement, but with the more ‘hands off’ approach. A flexible rental rate is good for the long-term sustainability of the lease because it allows the rates to be fair despite the rise and fall of crop prices.

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