URBANA, Ill. — Farm income this year, once the Market Facilitation Program payments are thrown in, look to be about average. However, next year is a much bigger problem says Gary Schnitkey from the University of Illinois. One that farmers and landowners need to tackle when they set cash rents.
Schnitkey: Flexibility is a key. I would suggest lowering cash rents if at all possible. You know, there is always this possibility that things change if something miraculous happens and we get back to $9.50 soybean prices or we have another Market Facilitation Program payment next year. So, building in a variable cash rent might be a good thing for next year.
If you’d like to explore possible variable cash rent agreements you can find examples online. Search Google for “variable cash rent lease examples” and then click on the [Farmdoc pdf](http://www.farmdoc.illinois.edu/manage/Variable_Cash_Rent_Lease_Fact_Sheet.pdf).
— Gary Schnitkey, Agricultural Economist – University of Illinois and Todd E Gleason, Farm Broadcaster
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