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.
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
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
Ohio Crop Yields
Crop Yields by County in Ohio from Ohio Agricultural Statistics Service
General Land Rental Agreement Information
Sample Agreements and Other Information
Cash Farm Lease-Detailed Sample Agreement (1997version of NCRME Cash Lease)