Malatya Haber Landlord/Tenant Cash Lease Workshop is Dec. 18 at Scottsbluff
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Landlord/Tenant Cash Lease Workshop is Dec. 18 at Scottsbluff


Land lease arrangements raise a lot of questions for landowners and tenants. Landlords sometimes feel they aren't receiving enough money for cash rent; tenants worry about affording to pay rent when yields are poor or prices drop. And both groups might wonder how the drought of 2012 changes farmland and pasture rental rates.

Answers to these and other land lease questions will be provided at a Landlord/Tenant Cash Lease workshop to be held Dec. 18 at Scottsbluff. The workshop will run from 10:30 a.m. until 2 p.m. in the Bluestem Room at the University of Nebraska-Lincoln Panhandle Research and Extension Center.

The Scottsbluff workshop is one of 28 workshops scheduled statewide during November and December, sponsored by the Nebraska Soybean Board and the North Central Risk Management Agency.

The main purpose of the workshop is to help with establishing and maintaining positive farm leasing relationships. This is a continuation of a successful program attended by more than 900 producers and landlords last year.

Changing economic conditions in the ag sector make negotiating land lease arrangements challenging for both tenants and landlords, according to Jessica Johnson, Extension educator for agricultural economics at the Panhandle Center.

Land values have been increasing, and rental rates tend to lag behind land values, so landlords need to make sure they get a fair return, she noted, but they also have to work with tenants and keep open lines of communications.

Sometimes it's necessary to reach a compromise to keep a renter on the place and financially viable, she said. "If we have a basis of where to start, it's possible to negotiate, so it's fair to all parties involved," she said.

From a tenant's perspective, operating costs have been increasing as well. Sometimes their responsibilities to the land are greater than in traditional tenant agreements.

There are new types of leases that can reduce upside and downside risks that might be worth considering, she said.

Putting together the right lease isn't about what is being discussed at the coffee shop or what a University survey of cash lease rates says; it is about what fits both the landlord and tenant for their circumstance and situation. Attending this presentation will provide a set of ideas to work from as those specifics are discussed.

The workshop is free, and lunch and handouts are provided, but participation is limited. Registration is required by Dec. 15 to reserve a spot. To register, contract Deidra McCarthy at the Panhandle Research and Extension Center at 308-632-1260.

Topics will include:

--Expectations from the lease, including goal setting for the rental property;

--Lease communication, determining appropriate information sharing for both the tenant and landlord;

--Tips for farm leases that include relatives;

SEmDAlternative cash lease arrangements, flexible provision considerations for your situation; and

SEmDOther topics, like irrigation systems and grain bin rental will be covered as time allows.

UNL Extension educators will present and provide common-sense tips during the presentation. It is helpful if both the tenant and landlord can attend together.

Date: 12/10/2012


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