Flex Rent Tool

Flex Rent Tool

Rethinking cash rents can help with market volatility.

Market prices in the fall and winter when cash lease rates are negotiated may not be there when the next crop is harvested.

With cash rents going higher every year with the expectation that corn and soybean prices will never come down, farmers are taking on added risk with each crop. Bruce Johnson and Tyler Rosener at the University of Nebraska-Lincoln developed a simple spreadsheet that will allow adjustments to the cash rent based on corn and soybean prices.

MANAGE RENTS: Latest Spreadsheet of the Month helps you set flex rents.

The spreadsheet sets a base cash rental rate that is adjusted on the actual harvest price once the crop is in the bin. It is a price only tool with the base rental rate set using projected yields that are set for the year. Prices have been the big player in rising cash rental rates across the Midwest, and this tool allows for an adjustment for both increases and decreases in the harvest price of corn and soybeans.

We're featuring the spreadsheet as our Farm Futures Spreadsheet of the Month. The 20-kilobyte spreadsheet should work with Excel 2000, 2002, 2010 or Excel XP. You can download it by clicking on the link below.

Do you have a spreadsheet that's made a difference on your operation that you'd be willing to share with other readers? Drop us a line at [email protected] with a description of the spreadsheet. We'll pay $75 if we feature your farmer-written noncommercial program as our Spreadsheet of the Month.

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