grain sorghum, agricultural economics, cash rents, tenant farming, share rents
As a landlord, would you like more freedom from worry about the farming practices of your tenant? about the division of crops? About upkeep of land and buildings? Flexible cash rent may be the answer. Under this method the rent does not vary with the way the tenant farms nor is there the division of grain and hay to worry about. As a tenant do you want more freedom to farm? to improve? And do you want more security of tenure? Again, flexible cash rent may be the answer. Under this system the way you farm does not affect the amount of rent. Hence the landlord is less concerned about what you grow and how you grow it. Thus your freedom to farm is increased. Because there is less about which to disagree, under flexible cash rent your chances of keeping the farm year after year are improved. Then, too, because you expect to keep the farm longer, your freedom to improve the buildings and the land is increased. You are less likely to lose the benefits of your improvements. Flexible cash rent has the main advantages of both fixed cash rents and crop share rents. It's like fixed cash rent in that neither party can affect the amount of rent to be paid after the lease is signed. But it's also like the crop share rent in that the rent varies with the county average yields of the most important or "king crop"-either corn or wheat (Figure 1). Thus flexible cash rent varies with all factors affecting county average yields of the "king crop" except the tenant's management.
South Dakota State State College of Agriculture and Mechanic Arts, Agricultural Experiment Station
Berry, R. L., "Flexible Cash Rents" (1968). Agricultural Experiment Station Circulars. 214.