Lease Types

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This form is payable on March 1st of every year before the crop is planted.

This type of lease was utilized to allow the landlord, who was an investor, the ability to be an active farmer and utilize a Section 179 depreciation expense on improvements. Bruce provided all of the inputs during the growing season and the landlord repaid their share of the inputs after selling the grain. I would suggest contacting your accountant to see if this would work for you. 

This lease provides 30% of the corn bushels and 35% of the soybean bushels to the landlord. The landlord has until a specified date to price the bushels of the specific crop. If the crop results in a crop insurance claim, the associated indemnity would be included in the lease payment. 

This lease provides a base cash rent per acre. Bruce provides an annual accounting of the farm. Any equipment operations are charged an average Iowa State Customs rate. At the end of every year, a detailed accounting of the farm's revenue and expenses are supplied to the landlord and profits after a predetermined level are split. 

On farms that require additional tile, we have had leases where we pay for the tile installation, and the landlord takes reduced cash rent in exchange for a longer-term lease. Bruce is able to take the Section 179 expense on this tile and reduce the landlords income but still improve their property.