FAIR rules can change land leases.Although new rules in the Federal Agricultural Improvement and Reform Act (FAIR) and the changing face of the agricultural economy could force changes in the way farmers and landlords lease land, a recent study showed that Kansas farmers still favor the traditional 1/3-2/3 crop share-lease. The researchers, Dan O'Brien
Daniel ("Dan") Dion O'Brien (born July 18, 1966 in Portland, Oregon) is a former American decathlete. and James Sartwelle, extension ag economists at Kansas State University Kansas State University, main campus at Manhattan; coeducational; land-grant and state supported; chartered and opened 1863. There is an additional campus at Salina. Among the university's research facilities are the J. R. , said there are both advantages and disadvantages to crop-share leasing. The advantages of crop-share leasing include landlord and tenant sharing management skills to increase crop returns; the lease partners share yield and price risk; the tenant needs less operating capital Noun 1. operating capital - capital available for the operations of a firm (e.g. manufacturing or transportation) as distinct from financial transactions and long-term improvements capital, working capital - assets available for use in the production of further assets ; and crop sales and input purchases can be timed to maximize tax benefits. Disadvantages include the landlord's fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. income because of changing input costs, crop yields and market prices; separate accounting for production expenses and shared expenses; and joint discussions and management decisions by the lease partners. The researchers' recommendations for an equitable equitable adj. 1) just, based on fairness and not legal technicalities. 2) refers to positive remedies (orders to do something, not money damages) employed by the courts to solve disputes or give relief. (See: equity) EQUITABLE. crop-share lease include: * Share variable expenses that increase yield in the same percentage as the crop share. * Share all crops alike between lease partners. * Adjust lease terms to balance differences in contributions and returns. * Share the returns according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the individual's contributions. * At the end of the lease, compensate both partners for the unused portion of their contribution or investment. (Contact: Dan O'Brien; 913-462-6181; or James Sartwelle; 316-275-9164) |
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