Share data, strengthen relationships with farmland lease annual reports
As easy as it is to share information today, many landlords still feel they are kept in the dark. Maybe they only hear from their tenants when it’s time to pay rent. Or, they ask for basic information and the tenant acts like its none of their business to be privy to such details.
“Landlords like to know what’s going on their property, and they just crave some information,” explains Melissa O’Rourke, Iowa State University Extension farm and agribusiness management specialist.
To enhance and encourage communication and build mutual benefits for both parties, consider preparing an annual farmland lease report. While not a legal document or contract, this simple tool is a guide for sharing crop information for farmland rental agreements, O’Rourke says.
“An annual lease report is a consistent format to share information,” she says. “Conversations based on the reported information should help the owner and producer to grow in understanding their relationship.”
An annual lease report will provide a comprehensive look at a piece of farmland, adds Mark Gannon, owner of Gannon Real Estate & Consulting. Plus, with both parties analyzing this information, they can set financial, agronomic or conservation goals for the land.
“Everybody wants to do the best thing for the property,” Gannon says. “Full disclosure of this information helps to do that.”
A Confidential Approach
If an annual report has not been used in the past, discuss its purpose with your landlords, O’Rourke suggests. At the same time, agree upon the confidential nature of the information.
“A landlord must understand their tenant does not want this proprietary business information shared with others who have no right to the data,” she says. “Likewise, the tenant should understand the landlord has a right to know how the farmland is being used for crop production. You will never hear a landowner complain that their farmer is giving them too much information.”
What to Include in an Annual Lease Report
A key advantage of an annual lease report is it can be customized to fit your purposes or your landlords’ preferences. Melissa O’Rourke, Iowa State University Extension farm and agribusiness management specialist, suggests providing information for these categories.
- Acreage Planted: The crops planted in each field, as well as the planting rates.
- Fertilizer Applied: The fertilizer types and rates for each field.
- Crop Chemicals Used: The date of application and application rate for each chemical.
- Soil Tests: The date and type (grid, zone, etc.) for every soil test completed on each field.
- Yield Results: Insurance quotes, yield maps or scale tickets to show per-acre yields for each field. You might also want to request historical yields.
- Soil and Land Improvements: This could include tiling, drainage, fences, etc.
Download a farmland lease annual report form from Iowa State University.
