Lease Options
Lantzky Farms has utilized various different farm leases in the past in order to meet the landlord's needs. The following are various types of leases that we currently have or have had in the past.
Percentage of the Crop
This lease provides 30% of the corn bushels and 35% of the soybean bushels to the landlord. The landlord has until a specified date to price the bushels of the specific crop. If the crop results in a crop insurance claim, the associated indemnity would be included in the lease payment.
Straight Cash Lease
(Per Tillable Acre)
This form is payable on March 1st of every year before the crop is planted.
Crop Share Lease
(50/50)
This type of lease was utilized to allow the landlord who was an investor the ability to be an active farmer and utilize a Section 179 depreciation expense on improvements. I provided all of the inputs during the growing season and the landlord repaid his share of the inputs after selling the grain. I would suggest contacting your accountant to see if this would work for you.
Base Plus Ending Bonus
This lease provides a base cash rent per acre. I provide an annual accounting of the farm. Any equipment operations are charged an average Iowa State Custom Rate. At the end of every year, a detailed accounting of the farm's revenue and expenses are supplied to the landlord and profits after a predetermined level are split.
Tile Installation
On farms that require additional tile, we have had leases where we pay for the tile installation and the landlord takes reduced cash rent in exchange for a longer term lease. I am able to take the Section 179 expense on this tile and reduce the landlord's income but still improve their property.
Some landlords that want to be more involved with their farm are provided an annual farm report. This includes:
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planting history
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chemical application
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fertilizer application
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yield maps
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weather charts
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updated improvements from the past year
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final financial reports
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updated plans for the upcoming year
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This provides a good history for landlords to provide to their family, or provides valuable data for historical information
Contact
Thinking about leasing out your ground or know someone who does? Let's get in touch and chat about what the best option is for you!