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Dalton, OH | Working on a variable cash lease with a landlord and would like some input from everybody. Here are some of my thoughts: I would base it on price and use my aph yield from crop insurance. Problem is setting the price. One idea I had was to do something similar to crop insurance and take the spring price (avg of Feb for corn) and harvest price (either Oct or Nov) and avg them together. At this point I would take the average price times the aph yield and then pay the landlord a certain percent. Am I going about this the correct way or should I go a different direction? I realize this probably wouldn't pass FSA for a true cash lease. Would they treat it as a share lease and if so how would they split the shares? Would it be based on the percent we paid the landlord? One way I thought a person might be able to get around FSA and make it a cash lease would be to have a set rent up front for 2009 and a "1 year contract", then based on the situation above for 2009 adjust the rent for 2010 and so-forth in later years. All thoughts, resources, and suggestions would be appreciated.
Thanks,
Scott | |
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Suggestions on Variable Cash Lease
