The annual task of negotiating cash rental agreements can be unnerving. Spend time preparing for these vital meetings and use negotiation best practices.
First, outline a meeting schedule so you can be ahead of the Sept. 1 annual renewal (or termination) date. Look at your landlord list and identify which discussions might take the longest and start with those first, suggests Mark Faust, business author and columnist for AgPro.
The best way to increase your personal confidence in negotiations is to be prepared. Think through each conversation from your landlord’s perspective. What questions will he or she have?
Plan on multiple meetings with each landlord. “There’s a false belief that a negotiation must be completed before you leave,” Faust says. “It’s better to slow it down and space out the conversation to make sure it’s a win-win for both parties.”
Be open about your respect for your landlords and their asset. “Share your love for the land and talk about your commitment in being a family farm,” Faust says. “One of the best ways to negotiate more effectively is to show your vulnerability and humanity.”
Selecting A Tenant
Below is the ranking of factors used to select a tenant based on a Kansas State University survey of 400 Kansas landowners. “These results are almost opposite of what most farmers assume,” says Mykel Taylor, ag economist at Kansas State.
- Tenant’s experience and reputation as a reliable farmer.
- Family considerations.
- Tenant’s environmental stewardship.
- Rental rate offered.
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