Central Nebraska | Little papa - 1/7/2025 16:32
I’ve heard of a landlord that base rent off crop ins formula and spring price. Then if fall price higher he get bonus. Been few years ago and exactly how the formula was I can’t remember but it seemed fair to me for both tenant and landlord.
I have one and how it is set up is I have a base rent (which is average for the area). The LL picks a local market, in our case the nearest ethanol plant. We then keep track of closing daily bids in February and October and average them.
Final yield x avg price x .33 - base rent equals the LL bonus.
Example 225x4x.33 = 297 - base rent = bonus
I don’t mind it. You can also use crop insurance prices but that doesn’t account for basis, and depending on your location, can skew it quite a bit in the LL favor. |
Should landlords be adjusting their rent for inflation.
