Dairy Farm Business Summary: Western Plateau 1979

Abstract

Land rental information has recently been in increasing demand. Much attention is being directed to the economics of crop production on all land including rented land as a result of rapidly rising fuel and fertilizer costs and increasing property taxes. Both farmer and landowner are in many instances reevaluating the terms of the land rental arrangement. The Federal Tax Reform Act of 1976 which allows for capitalization of land rental rates as an alternative method for valuing eligible cropland for estate taxation purposes has added to the demand for land rental information. The purpose of this report is to provide descriptive data on land rental rates and arrangements and the characteristics of the rented cropland for use by farmers, landowners and cooperative extension personnel with the numerous management decisions regarding rental of cropland. Also contained in this report is a discussion of methods that can be used for determination of cash rental rates from a renter and landlord perspective.