How to Negotiate Lower Cash Rent

January 3, 2018 12:17 PM
Corn field

Unfortunately for grain producers, most 2018 outlooks don’t include commodity prices soaring. That’s leaving many producers wondering how they will continue to be able to rent farmland when it’s barely profitable, and in some cases isn’t profitable. How can producers negotiate lower cash rent in the middle of a land rental agreement? It hinges on transparency, says Chris Barron a farmer, consultant and Top Producer columnist.

“As farmers we have a perspective of what we think the land is worth, and the landowner has an opinion of what the land is worth,” he told Pam Fretwell on the Top Producer Podcast. “The better job we can do providing factual information, the more likely we will be able to come to an agreement that benefits everybody.”


Barron recommends providing landlords with everything from yield data to marketing information. Particularly in a down market when the rent you are paying might not fit your budget.

“Keep that information handy so they can see you’re operating at a loss,” he says adding that looking at the numbers with your landlord can help start the conversation about amending rental rates.

Attend the 2018 Top Producer Seminar to learn more from Chris Barron on how to maintain a transparent relationship with all of your landlords.


Attend 2018 Top Producer Seminar

When: Jan. 23–26

Where: Hilton Chicago Hotel Downtown, 720 S. Michigan Ave.

What: Welcome reception on Tuesday, Jan. 24 with Trust In Food Symposium attendees; business education and Top Producer of the Year banquet on Wednesday, Jan. 25; “U.S. Farm Report” taping and business education with lunch keynote on Thursday, Jan. 26; and sponsor breakfast followed by two mainstage presentations on the global ag economy and event wrap-up at 10:30 a.m. on Friday, Jan. 27

More Info: To register for the seminar or for additional information, visit

Thanks to our 2018 Top Producer Seminar sponsors:

Premier Level: Agrium (ESN), BASF, Bayer, Beck’s Hybrids, Case IH, Channel, DOW AgroSciences, John Deere, KCOE ISOM, DuPont Pioneer, Top Third Ag Marketing, Valent Co-Sponsors: CliftonLarsonAllen, Rabo AgriFinance Supporting Level: Advance Trading, BMO Harris, Transition Point Business Advisors

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Spell Check

bad axe, MI
1/5/2018 06:17 AM

  This rents not going to come down until you get the government out of the farm finance business . This FHA million dollar loan guarantee loan program is propping all the rental and land values up in farm country. There is no risk to the lender if he plays along , plus it keeps his bank solvent . FHA knows that the growers going to lose money but it keeps the economy going with a cheap stable food supply. There will be no price on commodities for at least another 15 years. The big question everyone should be asking there lender and government officials is when are you going to charge some of my debt off to a manageable level, like happened in the 80's. This is coming somebody going to take a hair cut on this.

Neligh, NE
1/5/2018 09:18 AM

  I though TRUMP was solving all your problems!!

william mensing
Mt horeb, WI
1/3/2018 01:09 PM

  So we are suppose to ask some retired landowner on a fixed income to bucket the water for failed economic policies and Monsanto ??


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