How Do I Calculate a Fair Land Rental Price?

Many landowners in Ashtabula County choose to rent their farm ground instead of actively farming the ground themselves.  The major question that landlords and tenants ask is, “What is a fair price to rent farm ground for?”  Determining rental rates is dependent on a number of variables which are different for each land rental situation. 

Click here to access a fact sheet which will address some of the factors you should consider as you rent land in Ashtabula County.

Leases

It is recommended once the landlord and tenant agree on a rental price a written lease should be signed by both parties. The North Central Farm Management Extension Committee has developed a website “Ag Lease 101” which helps both land owners and land operators learn about alternative lease arrangements and includes sample written lease agreements for several alternatives. Some of the example leases available: Cash Farm Lease, Crop-Share Lease, Pasture Lease, Farm Building/Livestock Facility Lease, Farm Machinery Lease for Non-Commercial Transactions and Livestock Rental Lease. Ag Lease 101 can be accessed at:  https://aglease101.org/  Sample leases can also be accessed below.

Legal Questions & Answers

 OSU Extension’s Agricultural & Resource Law Program, led by Assistant Professor Peggy Kirk Hall, helps to provide research and outreach on legal issues affecting agriculture.  A variety of Law Bulletins are available from the Farm Leasing Law Library and include the following discussions: What’s in Your Farmland Lease?, Creating an Enforceable Farm Lease, Protecting, Interests in a Verbal Farm Lease Situation, Leasing Your Land for Hunting, Crop Share Leasing in Ohio, and Legal Aspects of Ohio Farmland Leases.  The Agricultural & Resource Law Program can be be accessed at: https://farmoffice.osu.edu/

 

Below is a listing of resources from The Ohio State University and other land grant universities you will find useful as you evaluate a fair rent for your farm.

 

Surveys of Cash Rental Rates

2022 Ohio Average Cash Rents from Ohio NASS

2019 Ohio Average Cash Rents from Ohio NASS

2017 Ohio Average Cash Rents from Ohio NASS

2016 Ohio Average Cash Rents from Ohio NASS

2014 Ohio Average Cash Rents from Ohio NASS

 

Farm Management Decision Tools

The tools below can be found at: https://aede.osu.edu/research/osu-farm-management/decision-tools

  • Flexible Cash Lease Calculator - Cash Lease with a Bonus Approach

  • Flexible Cash Lease Calculator - Net Return Approach

  • Flexible Cash Lease Calculator - Ratio Approach

  • Crop Share Calculator

  • Machinery Rental Rates Calculator

  • LANDBID

 

Ohio Crop Yields

Crop Yields by County in Ohio from Ohio Agricultural Statistics Service

 

General Land Rental Agreement Information

Fixed and Flexible Cash Rental Arrangements for Your Farm 

Crop Share or Crop Share-Cash Rental Agreements for Your Farm

Pasture Rental Agreements for Your Farm

 

Sample Agreements and Other Information

NCRME Fixed and Flexible Cash Lease Agreement-NEW

NCRME Crop Share Lease Agreement-NEW

Pasture Rental Agreement-NEW

Basic Farm Agreement (FSA compliant)

Sample Farm Cash Lease agreement (FSA Compliant)

Cash Farm Lease-Detailed Sample Agreement (1997version of NCRME Cash Lease)