Under the hassle-free lease, Tillable offers owners of Michigan`s eight million acres of leased farmland a one- or three-year lease option for their land, pays the landowner upfront and in full, and finds a farmer to work on their land for the term of the lease starting with the 2020 growing season. In exchange for ownership and control of the owner`s land, the farmer pays rent, which can take various forms. Many leases require fixed cash payments. But others require a share of the proceeds from the sale of crops or livestock produced on the property – or a combination of fixed rent and shared goods. Similarly, a crop sharing lease should explain how costs – such as transporting and storing crops – should be shared between the landlord and tenant. For more information on average rental prices in your county, check out the following report, which is based on survey data from the USDA`s National Agricultural Statistics Service for Michigan counties. A copy of the entire series in the form of a fact sheet is available at the following web address. Renting due to suffering is created by law and usually occurs when a tenant stays without the consent of the landlord. The hassle-free lease also provides peace of mind that landowners will receive a fair lease payment while eliminating the risk of market volatility, destructive weather in the Midwest, or unfair leases that ultimately hurt profitability. The three-year option is particularly attractive to landowners who want longer-term protection. Many leases provide for a multi-year lease because this type of agreement generally encourages the parties to invest in improving the land and promotes the stability of the business relationship. There are many important and complex issues to consider when negotiating a land lease. For this reason, leases must be documented in a written agreement signed by both parties.

Some issues depend on the type of lease being negotiated – for example, a crop-sharing lease is likely to require more provisions that address economic security and the relative contributions required of each party than in a cash lease. However, regardless of the type of lease, one thing that is consistent is that negotiating a fair, clear and effective lease is an essential step in establishing a good working relationship between the landlord and tenant and ensuring the success of the farm. CHICAGO – December 10, 2019 – To help even more Midwestern landowners reduce the risk associated with farmland ownership and simplify the farmland leasing process, Tillable, the $32 billion online marketplace for the farmland rental market, today announced the launch of its new hassle-free lease in Michigan. Many farmers and landowners find renting to be a good option. Leased land may be easier to find. Rental prices can be easier for farmers to manage than loan payments. Renting can provide owners with a steady stream of income without the hassle and work of direct land management. Good relationships between farmers and their owners can give farmers a head start when an owner decides to sell and provide owners with a market-ready market for their land – without paying brokerage fees. Homeowners are naturally concerned about the quality, sustainability and long-term productivity of the soil and buildings on their land. Leases often address the responsibilities – and costs – of each party when it comes to maintaining land and buildings. This series covers the factors to consider when renting your farmland.

As an alternative to the crop-sharing arrangement, there is a fixed bushel agreement with the owners. The rent payment is a fixed number of bushels of grain per hectare to the landlord. For example, a corn rent could be 40 bushels of corn per acre. The lease of the bushel is delivered to the local elevator on behalf of the landlord, which means that the landowner has the opportunity and responsibility to market the grain. When the selling price of corn is high, the landlord`s rental income increases, while in lower price years, rental income decreases. The landowner`s marketability could have a significant impact on their income. The tenant and landowner must establish a schedule for the crops to be grown and the bushels, which are considered a rent payment for each of these crops. In this agreement, the landowner does not have a production risk, but a marketing risk. Many leases limit the tenant to agricultural use and require the tenant to apply good agricultural practices. .