managing agricultural land in 2020 and beyond · 2020-02-12 · managing agricultural land in 2020...
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University of Nebraska-Lincoln Extension is a Division of the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln cooperating with the Counties and the United States Department of Agriculture. University of Nebraska-Lincoln educational programs abide with the nondiscrimination policies of the University of Nebraska-Lincoln and the United States Department of Agriculture. ©2018 University of Nebraska-Lincoln Board of Regents. All rights reserved. This material may not be reproduced, displayed, modified, or distributed without the express prior written permission of the copyright holder.
Managing Agricultural Land in 2020 and Beyond
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This material is based upon work supported by USDA-NIFA under Award Number 2018-70027-28586.
Man
agin
g A
gri
cult
ura
l L
and
in
202
0 an
d B
eyo
nd
Mee
ting
Ser
ies
2019
-202
0
Thi
s m
ater
ial i
s ba
sed
upon
wor
k su
ppor
ted
by U
SDA
-NIF
A
unde
r A
war
d N
umbe
r 20
18-7
0027
-285
86
Prog
ram
Ove
rvie
w
•F
inan
cial
and
lega
l con
side
rati
ons
for
land
leas
es•
Eff
ecti
ve n
egot
iati
on s
kill
s w
ith
land
lord
s, te
nant
s, a
nd a
gric
ultu
ral
inpu
t pro
vide
rs•
Suc
cess
ful a
ppro
ache
s fo
r fa
rm a
nd r
anch
suc
cess
ion
and
tran
sfer
•C
riti
cal s
hort
and
long
-ter
m d
ecis
ion-
mak
ing
and
plan
ning
Neb
rask
a F
arm
Rea
l Est
ate
&F
inan
cial
Tre
nd
s 20
19-2
020
Jim
Jan
sen
Agr
icul
tura
l Eco
nom
ist
jjan
sen4
@un
l.edu
402-
261-
7572
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
1A
ll R
ight
s Res
erve
d.
DIS
CLA
IMER
•L
and
valu
es a
nd r
enta
l rat
es s
how
n an
d di
scus
sed
in th
ispr
esen
tati
on a
re e
xcer
pts
from
the
UN
L N
ebra
ska
Far
m R
eal E
stat
eM
arke
t Sur
vey.
•In
form
atio
n pr
ovid
ed in
this
pre
sent
atio
n ar
e av
erag
es f
rom
thes
esu
rvey
s. A
ctua
l lan
d va
lues
and
ren
tal r
ates
may
var
y de
pend
ing
upon
the
qual
ity
of th
e pa
rcel
and
loca
l mar
ket f
orce
s fo
r an
are
a.
Neb
rask
a Fa
rm R
eal E
stat
e Su
rvey
•A
nnua
l sur
vey
cond
ucte
d si
nce
1978
of
Neb
rask
a ag
ricu
ltur
alap
prai
sers
, pro
fess
iona
l far
m m
anag
ers,
and
ban
kers
eng
aged
in th
ela
nd in
dust
ry.
•P
reli
min
ary
resu
lts
for
land
val
ues
and
rent
al r
ates
pub
lish
ed th
ese
cond
wee
k of
Mar
ch.
•F
ull r
epor
t pub
lish
ed in
Jun
e.•
Neb
rask
a F
arm
Rea
l Est
ate
web
site
ful
l acc
ess
to th
ese
reso
urce
s:ht
tp:/
/age
con.
unl.e
du/r
eale
stat
e
Neb
rask
a Ag
ricul
tura
l Sta
tistic
s D
istri
cts
Neb
rask
a La
nd V
alue
sL
and
Ave
rage
s an
d A
nnua
l Per
cent
Cha
nges
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
2A
ll R
ight
s Res
erve
d.
Neb
rask
a Ag
ricul
tura
l Ave
rage
Al
l Lan
d Va
lue
–Fe
b. 1
, 201
9
Nor
th$1
,050
/ac
-4%
Nor
thw
est
$680
/ac
-5%
Sou
thw
est
$1,5
65/a
c-5
%
Cen
tral
$3,0
90/a
c-2
%
Nor
thea
st$5
,230
/ac
-3% E
ast
$6,1
85/a
c-1
%
Sou
thea
st$4
,700
/ac
-2%
Sou
th$3
,535
/ac
-6%
Sta
te$2
,645
/ac
-3%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Neb
rask
a Av
erag
e La
nd V
alue
and
Cor
n Pr
ice,
19
79-2
019
Neb
rask
a Av
g. L
and
Valu
e &
10-y
ear T
reas
ury
Bond
Rat
e, 1
978-
2019
Prop
erty
Val
uatio
n C
hang
es
in S
tate
wid
e Pr
oper
ty V
alua
tion
Perc
enta
ges,
198
1-20
18
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
3A
ll R
ight
s Res
erve
d.
Prop
erty
Val
uatio
nC
hang
e in
Pro
perty
Tax
es L
evie
d on
Ag
Land
-20
18
Sour
ce: N
ebra
ska
Farm
Bur
eau,
Ag
Econ
omics
Tid
bits
, Jun
e 3,
201
9
Prop
erty
Val
uatio
nC
hang
e in
Pro
perty
Tax
es L
evie
d on
Ag
Land
-20
18
Exc
erpt
from
Neb
rask
a F
arm
Bur
eau,
Ag
Eco
n Ti
dbit
s, J
une
3, 2
019
•F
or th
e fi
rst t
ime
in 2
0 ye
ars,
pro
pert
y ta
xes
levi
ed o
n ag
ricu
ltur
alla
nd s
tate
wid
e de
clin
ed y
ear-
to-y
ear.
•Ta
xes
levi
ed in
201
8, $
1.18
3 bi
llio
n, w
ere
1.5
perc
ent o
r $1
7.5
mil
lion
less
than
that
levi
ed in
201
7.•
Agr
icul
tura
l lan
dow
ners
in 6
3 co
unti
es s
aw r
educ
ed ta
xes
levi
ed.
McP
hers
on a
nd P
erki
ns C
ount
ies
both
had
dec
line
s ta
xes
of o
ver
11pe
rcen
t. G
age
Cou
nty,
on
the
othe
r ha
nd, s
aw ta
xes
incr
ease
9pe
rcen
t.
Dry
land
Cro
plan
d (N
o Irr
igat
ion
Pote
ntia
l)Av
erag
e Va
lue
–Fe
b. 1
, 201
9
Nor
th$1
,495
/ac
-1%
Nor
thw
est
$645
/ac
-4%
Sou
thw
est
$1,4
45/a
c-9
%
Cen
tral
$2,7
55/a
c1%
Nor
thea
st$5
,300
/ac
-4% E
ast
$5,7
65/a
c2%
Sou
thea
st$4
,130
/ac
-2%
Sou
th$2
,880
/ac
-3%
Sta
te$3
,040
/ac
-2%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Dry
land
Cro
plan
d (Ir
rigat
ion
Pote
ntia
l)Av
erag
e Va
lue
–Fe
b. 1
, 201
9
Nor
th$1
,915
/ac
-4%
Nor
thw
est
$680
/ac
-7%
Sou
thw
est
$1,5
85/a
c-3
%
Cen
tral
$3,0
55/a
c-1
%
Nor
thea
st$5
,640
/ac
-3% E
ast
$6,1
45/a
c-2
%
Sou
thea
st$5
,265
/ac
-1%
Sou
th$3
,450
/ac
-5%
Sta
te$4
,010
/ac
-3%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
4A
ll R
ight
s Res
erve
d.
Gra
zing
Lan
d (T
illabl
e)Av
erag
e Va
lue
–Fe
b. 1
, 201
9
Nor
th$1
,040
/ac
-3%
Nor
thw
est
$500
/ac
-2%
Sou
thw
est
$880
/ac
-7%
Cen
tral
$1,7
50/a
c-1
0%
Nor
thea
st$3
,125
/ac
-6% E
ast
$3,0
75/a
c-8
%
Sou
thea
st$2
,760
/ac
-3%
Sou
th$1
,875
/ac
-4%
Sta
te$1
,185
/ac
-5%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Gra
zing
Lan
d (N
ontil
labl
e)Av
erag
e Va
lue
–Fe
b. 1
, 201
9
Nor
th$6
25/a
c-2
%N
orth
wes
t$4
10/a
c-6
%
Sou
thw
est
$735
/ac
-6%
Cen
tral
$1,4
05/a
c-9
%
Nor
thea
st$1
,995
/ac
-7% E
ast
$2,2
55/a
c-4
%
Sou
thea
st$1
,970
/ac
-4%
Sou
th$1
,335
/ac
-9%
Sta
te$7
95/a
c-5
%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Hay
land
Aver
age
Valu
e –
Feb.
1, 2
019
Nor
th$1
,140
/ac
-10%
Nor
thw
est
$710
/ac
-7%
Sou
thw
est
$1,2
55/a
c-8
%
Cen
tral
$1,8
85/a
c-5
%
Nor
thea
st$3
,020
/ac
-4% E
ast
$3,0
40/a
c2%
Sou
thea
st$2
,645
/ac
1%
Sou
th$1
,990
/ac
-3%
Sta
te$1
,615
/ac
-6%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Gra
vity
Irrig
ated
Cro
plan
dAv
erag
e Va
lue
–Fe
b. 1
, 201
9
Nort
h$3
,570
/ac
-2%
Nort
hwes
t$2
,245
/ac
-4%
Sout
hwes
t$3
,700
/ac
-5%
Cent
ral
$5,8
60/a
c1%
Nort
heas
t$6
,510
/ac
-3% Ea
st$7
,585
/ac
2%
Sout
heas
t$5
,900
/ac
-6%
Sout
h$5
,365
/ac
-7%
Stat
e$5
,690
/ac
-2%
Sour
ce: N
ebra
ska
Farm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 20
19.
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
5A
ll R
ight
s Res
erve
d.
Cen
ter P
ivot
Irrig
ated
Cro
plan
dAv
erag
e Va
lue
–Fe
b. 1
, 201
9
Nor
th$3
,905
/ac
-3%
Nor
thw
est
$2,5
65/a
c-5
%
Sou
thw
est
$4,1
10/a
c-4
%
Cen
tral
$6,3
90/a
c-2
%
Nor
thea
st$7
,210
/ac
-1% E
ast
$8,4
85/a
c-2
%
Sou
thea
st$7
,470
/ac
-3%
Sou
th$6
,150
/ac
-6%
Sta
te$5
,970
/ac
-3%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Sour
ce: N
ebra
ska
Farm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 20
19.
Rat
ing
of F
acto
rs In
fluen
cing
Agr
icul
tura
l Lan
d Va
lues
in 2
019
Nebr
aska
Ran
ks
#1 in
Pe
rcen
tage
In
crea
se
Sour
ce: F
arm
Pro
pert
y Ta
xes,
Part
II: A
Geo
grap
hica
l Lo
ok, A
gricu
ltura
l Eco
nom
ic In
sight
s, Ju
ly 2
9, 2
019
Neb
rask
a C
ash
Ren
tal R
ates
Dry
land
Cro
plan
d R
enta
l Rat
es
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
6A
ll R
ight
s Res
erve
d.
Dry
land
Cro
plan
dAv
erag
e R
enta
l Rat
es –
2019
Sea
son
Nor
th$5
0/ac
-6%
Nor
thw
est
$27/
ac-4
%
Sou
thw
est
$38/
ac-7
%
Cen
tral
$84/
ac-5
%
Nor
thea
st$2
05/a
c-2
% Eas
t$2
00/a
c5%
Sou
thea
st$1
55/a
c-3
%
Sou
th$7
3/ac
-4%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Dry
land
Cro
plan
d R
enta
l Rat
e R
ange
s –
2019
Sea
son
Nor
thH
: $7
4/ac
A:
$50/
acL
: $3
6/ac
Nor
thw
est
H:
$40/
acA
: $2
7/ac
L:
$21/
ac
Sou
thw
est
H:
$55/
acA
: $3
8/ac
L:
$31/
ac
Cen
tral
H:
$110
/ac
A:
$84/
acL
: $6
7/ac
Nor
thea
stH
: $2
45/a
cA
: $2
05/a
cL
: $1
70/a
c Eas
tH
: $2
30/a
cA
: $2
00/a
cL
: $1
60/a
c
By
Reg
ion
Hig
h G
rad
e (H
)A
vera
ge (
A)
Low
Gra
de
(L)
Sou
thH
: $1
05/a
cA
: $7
3/ac
L:
$47/
ac
Sou
thea
stH
: $1
85/a
cA
: $1
55/a
cL
: $1
25/a
c
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
USD
A-N
atio
nal A
gric
ultu
ral S
tatis
tics
Serv
ice
Cas
h R
ent S
urve
y•
Bie
nnia
l sur
vey
cond
ucte
d by
the
US
DA
-Nat
iona
l Agr
icul
tura
l Sta
tist
ics
Ser
vice
(NA
SS
) of
far
mer
s an
d ra
nche
rs•
Sur
vey
star
ts in
late
-win
ter
and
cond
ucte
d th
roug
h m
id-s
umm
er o
f od
d-nu
mbe
red
year
s•
Ana
lysi
s pu
blis
hed
arou
nd th
e se
cond
wee
k of
Sep
tem
ber
•N
ebra
ska
coun
ty e
stim
ates
in a
ddit
ion
to o
ther
res
ourc
es m
ay b
e fo
und
at:
ww
w.n
ass.
usda
.gov
/Sta
tist
ics_
by_S
tate
/Neb
rask
a/P
ubli
cati
ons/
Cou
nty_
Est
imat
es/
Dry
land
Cro
plan
d R
enta
l Rat
es –
2019
Sea
son
Sou
rce:
Far
mla
nd R
enta
l Rat
e S
urve
y, U
SD
A-N
AS
S, S
ept 1
0, 2
019
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
7A
ll R
ight
s Res
erve
d.
Neb
rask
a C
ash
Ren
tal R
ates
Pas
ture
and
Cow
-Cal
f P
airs
R
enta
l Rat
es
Past
ure
per A
cre
Aver
age
Ren
tal R
ates
–20
19 S
easo
n
Nor
th$2
4/ac
-6%
Nor
thw
est
$11/
ac1%
Sou
thw
est
$19/
ac-7
%
Cen
tral
$31/
ac-5
%
Nor
thea
st$5
9/ac
-4% E
ast
$47/
ac-3
%
Sou
thea
st$4
6/ac
-1%
Sou
th$3
4/ac
-5%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Past
ure
per A
cre
Ren
tal R
ate
Ran
ges
–20
19 S
easo
n
Nor
thH
: $3
8/ac
A:
$24a
cL
: $1
3/ac
Nor
thw
est
H:
$18/
acA
: $1
1/ac
L:
$8/a
c
Sou
thw
est
H:
$27/
acA
: $1
9/ac
L:
$15/
ac
Cen
tral
H:
$43/
acA
: $3
1/ac
L:
$25/
ac
Nor
thea
stH
: $7
7/ac
A:
$59/
acL
: $4
1/ac
Eas
tH
: $6
6/ac
A:
$47/
acL
: $3
8/ac
By
Reg
ion
Hig
h G
rad
e (H
)A
vera
ge (
A)
Low
Gra
de
(L)
Sou
thH
: $3
9/ac
A:
$34/
acL
: $2
4/ac
Sou
thea
stH
: $6
1/ac
A:
$46/
acL
: $3
9/ac
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Past
ure
per A
cre
Ren
tal R
ates
–20
19 S
easo
n
Sou
rce:
Far
mla
nd R
enta
l Rat
e S
urve
y, U
SD
A-N
AS
S, S
ept 1
0, 2
019
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
8A
ll R
ight
s Res
erve
d.
Cow
-Cal
f Pai
rsAv
erag
e R
enta
l Rat
es –
2019
Mon
thly
Nor
th$5
7.35
/pai
r2%
Nor
thw
est
$36.
35/p
air
1%
Sou
thw
est
$45.
80/a
c-6
%
Cen
tral
$50.
80/p
air
-3%
Nor
thea
st$5
4.95
/pai
r4%
Eas
t$4
9.25
/pai
r2%
Sou
thea
st$4
6.65
/pai
r-4
%
Sou
th$4
4.35
/ac
-5%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Cow
-Cal
f Pai
rs
Ren
tal R
ate
Ran
ges
–20
19 M
onth
ly
Nor
thH
: $7
0.95
/pai
r A
: $5
7.50
/pai
r
L: $
47.4
5/p
air
Nor
thw
est
H:
$46.
75/p
air
A:
$36.
15/p
air
L:
$27.
10/p
air
Sou
thw
est
H:
$58.
20/p
air
A:
$45.
35/p
air
L:
$40.
45/p
air
Cen
tral
H:
$62.
25/p
air
A:
$50.
70/p
air
L:
$39.
55/p
air
Nor
thea
stH
: $7
2.60
/pai
rA
: $5
4.90
/pai
rL
: $4
2.35
/pai
r
Eas
tH
: $6
3.00
/pai
rA
: $4
9.15
/pai
rL
: $4
3.75
/pai
r
By
Reg
ion
Hig
h G
rad
e (H
)A
vera
ge (
A)
Low
Gra
de
(L)
Sou
thH
: $5
7.55
/pai
rA
: $4
4.10
/pai
rL
: $3
6.95
/pai
r
Sou
thea
stH
: $5
5.80
/pai
rA
: $4
5.15
/pai
rL
: $3
4.60
/pai
r
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Neb
rask
a C
ash
Ren
tal R
ates
Irri
gate
d C
ropl
and
Ren
tal R
ates
Gra
vity
Irrig
ated
Cro
plan
dAv
erag
e R
enta
l Rat
es –
2019
Sea
son
Nor
th$1
65/a
c-3
%N
orth
wes
t$1
10/a
c-4
%
Sou
thw
est
$155
/ac
-6%
Cen
tral
$195
/ac
-5%
Nor
thea
st$2
55/a
c2%
Eas
t$2
45/a
c-4
%
Sou
thea
st$2
20/a
c-2
%
Sou
th$1
90/a
c-5
%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
9A
ll R
ight
s Res
erve
d.
Gra
vity
Irrig
ated
Cro
plan
dR
enta
l Rat
e R
ange
s –
2019
Sea
son
Nor
thH
: $1
90/a
cA
: $1
65/a
cL
: $1
15/a
c
Nor
thw
est
H:
$135
/ac
A:
$110
/ac
L:
$88/
ac
Sou
thw
est
H:
$195
/ac
A:
$155
/ac
L:
$120
/ac
Cen
tral
H:
$245
/ac
A:
$195
/ac
L:
$160
/ac
Nor
thea
stH
: $2
85/a
cA
: $2
55/a
cL
: $2
15/a
c Eas
tH
: $2
85/a
cA
: $2
45/a
cL
: $2
10/a
c
By
Reg
ion
Hig
h G
rad
e (H
)A
vera
ge (
A)
Low
Gra
de
(L)
Sou
thH
: $2
30/a
cA
: $1
90/a
cL
: $1
55/a
c
Sou
thea
stH
: $2
60/a
cA
: $2
20/a
cL
: $1
85/a
c
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Cen
ter P
ivot
Irrig
ated
Cro
plan
dAv
erag
e R
enta
l Rat
es –
2019
Sea
son
Nor
th$1
85/a
c-8
%N
orth
wes
t$1
45/a
c-3
%
Sou
thw
est
$175
/ac
-8%
Cen
tral
$215
/ac
-2%
Nor
thea
st$2
80/a
c-3
% Eas
t$2
85/a
c2%
Sou
thea
st$2
50/a
c-4
%
Sou
th$2
05/a
c-5
%
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Cen
ter P
ivot
Irrig
ated
Cro
plan
dR
enta
l Rat
e R
ange
s –
2019
Sea
son
Nor
thH
: $2
25/a
cA
: $1
85/a
cL
: $1
40/a
c
Nor
thw
est
H:
$180
/ac
A:
$145
/ac
L:
$110
/ac
Sou
thw
est
H:
$220
/ac
A:
$175
/ac
L:
$150
/ac
Cen
tral
H:
$260
/ac
A:
$215
/ac
L:
$175
/ac
Nor
thea
stH
: $3
25/a
cA
: $2
80/a
cL
: $2
40/a
c Eas
tH
: $3
25/a
cA
: $2
85/a
cL
: $2
40/a
c
By
Reg
ion
Hig
h (
H)
Ave
rage
(A
)L
ow (
L)
Sou
thH
: $2
50/a
cA
: $2
05/a
cL
: $1
85/a
c
Sou
thea
stH
: $3
00/a
cA
: $2
50/a
cL
: $2
05/a
c
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Irrig
ated
Cro
plan
d R
enta
l Rat
es –
2019
Sea
son
Sour
ce: F
arm
land
Ren
tal R
ate
Surv
ey, U
SDA-
NASS
, Sep
t 10,
201
9
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
10A
ll R
ight
s Res
erve
d.
Agric
ultu
ral L
and
Leas
esT
rend
s in
Lea
se A
rran
gem
ents
for
202
0
Cro
plan
d Le
ase
Arra
ngem
ents
R
isk
and
Ret
urns
•R
isk
and
retu
rns
vary
bas
ed
upon
exp
ecte
d pr
ices
and
yie
lds
•C
rop
shar
e or
fle
x le
ases
all
ow
for
effe
ctiv
e re
nt to
var
y ba
sed
upon
yie
ld, p
rice
, or
reve
nue
•P
refe
renc
es f
or th
e le
ase
type
va
ry b
ased
upo
n la
nd o
wne
r an
d te
nant
Ris
k
Average Return
Ten
ant
Cu
stom
F
arm
Cro
p
Sh
are
Fle
x L
ease
Cas
hR
ent
Lan
dlo
rdC
ash
Ren
t
Fle
xL
ease
Cro
pS
har
e
Cu
stom
F
arm
Met
hods
for S
ettin
g C
ash
Ren
tal R
ates
•M
etho
ds f
or e
stim
atin
g a
cash
ren
tal r
ate
in 2
019
or 2
020:
•A
djus
ting
sur
vey
data
•C
ash
equi
vale
nt f
rom
cro
p sh
are
•R
etur
n on
inve
stm
ent
Estim
atin
g C
ash
Ren
tal R
ates
by
Adju
stin
g Su
rvey
D
ata
•L
and
rent
al r
ate
surv
ey d
ata:
•E
valu
ate
avai
labl
e ca
sh r
enta
l sur
vey
data
to e
stab
lish
a b
asel
ine
in th
e la
ndlo
rd
and
tena
nt n
egot
iati
on p
roce
ss.
•A
vera
ge y
ield
s:
Coun
tyVa
lue
Farm
Valu
e
Coun
ty R
enta
l Rat
e$1
35/a
c.Co
unty
Re
nt/B
ushe
l$1
.13/
bu.
Corn
Yie
ld12
0 bu
./ac.
APH
Yiel
dx 1
05 b
u./a
c.Co
unty
Re
nt/B
ushe
l$1
.13/
bu.
Farm
Leve
l Ren
t$1
18.1
3/ac
.
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
11A
ll R
ight
s Res
erve
d.
Cas
h Eq
uiva
lent
Fro
m C
rop
Shar
e
•R
ent p
aid
to la
ndlo
rd b
y te
nant
bas
ed o
ff o
wne
r’s
shar
e of
net
retu
rns
per
acre
.•
Exa
mpl
e 50
/50
spli
t:
Valu
eCo
rn
Soyb
eans
Yiel
d (5
0% sh
are)
80 b
u./a
c.25
bu.
/ac.
Pric
e/bu
shel
x $3.
50/b
u.x $
8.40
/bu.
Inco
me
$280
/ac.
$235
/ac.
Ow
ner E
xpen
ses
-$15
5/ac
.-$
95/a
c.Ne
t Ret
urn
to O
wne
r (E
ffect
ive
Rent
)$1
25/a
c.$1
15/a
c.
Ret
urn
on In
vest
men
t
•M
ulti
ply
the
esti
mat
ed c
urre
nt m
arke
t val
ue b
y th
e ex
pect
ed r
ate
ofre
turn
to d
eter
min
e th
e re
ntal
rat
e pe
r ac
re.
*Est
imat
ed n
et r
ates
of
retu
rn b
y la
nd ty
pe a
re a
vail
able
in T
able
5
of th
e N
ebra
ska
Far
m R
eal E
stat
e M
arke
t Hig
hlig
hts
Rep
ort 2
018-
2019
.
Dryl
and
Irrig
ated
Cr
opla
ndCr
opla
ndLa
nd V
alue
$5,0
00/a
c.$8
,500
/ac.
Rate
of R
etur
nx 2
.4-2
.8%
x 2.5
-2.9
%
Rent
al R
ate
per A
cre
$120
-$14
0/ac
.$2
13-$
247/
ac.
Farm
Entit
y R
espo
nsib
le fo
r Mai
ntai
ning
Irrig
atio
n Sy
stem
as
Part
of C
ash
Leas
e in
Neb
rask
a
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
018.
Dis
coun
t on
Cas
h R
ent p
er A
cre
Whe
n Te
nant
O
wns
Piv
ot fo
r Irri
gatio
n Sy
stem
in N
ebra
ska
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
018.
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
12A
ll R
ight
s Res
erve
d.
Dis
coun
t on
Cas
h R
ent p
er A
cre
Whe
n Te
nant
Ow
ns
Pow
er U
nit f
or Ir
rigat
ion
Syst
em in
Neb
rask
a
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
018.
Rea
sons
for P
lant
ing
Cov
er C
rops
on
Cro
plan
d in
Neb
rask
a
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
Cov
er C
rop
Prac
tices
in N
ebra
ska
by A
gric
ultu
ral
Stat
istic
s D
istri
ct
Sou
rce:
201
7 C
ensu
s of
Agr
icul
ture
, Nat
iona
l Agr
icul
tura
l Sta
tist
ical
Ser
vice
, US
DA
.
- - -
Perc
ent -
- -
- - -
Perc
ent -
- -
North
wes
t52
,884
2,90
4,63
71.
827
43,
682
7.4
North
57,9
891,
820,
397
3.2
306
2,68
611
.4No
rthea
st
133,
885
3,63
0,05
13.
796
06,
717
14.3
Cent
ral
98,4
852,
048,
103
4.8
585
3,94
914
.8Ea
st18
6,21
64,
214,
043
4.4
1,10
29,
695
11.4
Sout
hwes
t60
,853
2,48
9,75
72.
426
52,
686
9.9
Sout
h83
,247
1,87
8,08
94.
434
32,
431
14.1
Sout
heas
t73
,203
3,25
7,52
22.
258
46,
238
9.4
Stat
e74
7,90
322
,242
,599
3.4
4,41
938
,084
11.6
- - -
- - -
Acre
s - -
- - -
-- -
- - -
- Nu
mbe
rs -
- - -
- -
Agric
ultu
ral
Stat
istics
Di
stric
t
Plan
ted
Acre
sCr
opla
nd A
cres
Pl
ante
d to
Co
ver C
rops
Num
ber o
f Ope
rato
rsCr
opla
nd
Oper
ator
s Pla
nted
Co
ver C
rops
Cove
r Cro
psCr
opla
ndPl
ante
dCo
ver C
rops
Plan
ted
Crop
land
Ren
tal D
isco
unt i
n D
olla
rs p
er A
cre
on L
and
Leas
e W
hen
Tena
nt P
lant
s C
over
Cro
ps in
Neb
rask
a
Sou
rce:
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket D
evel
opm
ent S
urve
y, 2
019.
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
13A
ll R
ight
s Res
erve
d.
Filla
ble
Leas
es –
AgLe
ase1
01.o
rg
Click
Do
cum
ent
Libra
ry
Filla
ble
Form
sLe
ase
Publ
icatio
ns
Que
stio
ns?
Jim
Jan
sen
Agr
icul
tura
l Eco
nom
ist
jjan
sen4
@un
l.edu
402-
261-
7572
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
14A
ll R
ight
s Res
erve
d.
Neg
oti
atio
ns
Aus
tin
Due
rfel
dt, E
xten
sion
Edu
cato
rad
uerf
eldt
@un
l.edu
Neg
otia
tions
A b
ack
and
fort
h pr
oces
s de
sign
ed to
rea
ch a
n ag
reem
ent w
hen
you
and
the
othe
r pa
rty
have
bot
h sh
ared
and
opp
osed
issu
es.
Tra
ctor
Lea
sing
Liv
esto
ck P
urch
ases
Cus
tom
Wor
k
Far
m G
roun
d C
ash
Ren
t
•C
ompe
titi
on -
dist
ribu
tive
or
win
-los
e ba
rgai
ning
•C
olla
bora
tive
–in
tegr
ativ
e or
win
-win
bar
gain
ing
•M
ixed
mot
ive
–co
mbi
nati
on o
f th
e ab
ove
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
15A
ll R
ight
s Res
erve
d.
Goo
d O
utco
me?
Par
t 1 E
xam
ple
Goo
d O
utco
me?
Par
t 1 E
xam
ple
Goo
d O
utco
me?
Par
t 2 E
xam
ple
Goo
d O
utco
me?
Par
t 2 E
xam
ple
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
16A
ll R
ight
s Res
erve
d.
Trad
ition
al B
arga
inin
g M
etho
dC
omm
itm
ent (
extr
eme
posi
tion
) Fin
al O
ffer
Las
t Off
er
Fin
al L
ast O
ffer
Spl
it th
e D
iffe
renc
e C
ompr
omis
e
Com
mit
men
t (ex
trem
e po
siti
on)F
inal
Off
er
Las
t Off
er
Fin
al L
ast O
ffer
Thr
eat t
o w
alk
Thr
eat t
o w
alk
Valu
e C
reat
ion
Neg
otia
tions
Inte
rest
Opt
ions
Cri
teri
a
Com
mit
men
tB
AT
NA
Com
mun
icat
ion
Rel
atio
nshi
p Boo
k: G
etti
ng to
Yes
: Neg
otia
ting
Agr
eem
ent W
itho
ut G
ivin
g In
Aut
hors
: Rog
er F
ishe
r, W
illi
am U
ry, B
ruce
Pat
ton
Valu
e C
reat
ion
Pot
enti
al
Was
ted
V
alu
e
Th
eir
Sat
isfa
ctio
n
Your Satisfaction
Val
ue
Val
ue
Pu
re P
rice
Neg
otia
tion
Val
ue
Cre
atio
n N
egot
iati
on
Pu
re P
rice
Neg
otia
tion
Pri
ce N
egot
iE
xam
ple
Type
s of
Diff
eren
ces
–“V
alue
Cre
atio
n”
•R
esou
rces
and
cap
abil
itie
s•
Rel
ativ
e va
luat
ions
•F
orec
asts
•R
isk
pref
eren
ces
•T
ime
pref
eren
ces
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
17A
ll R
ight
s Res
erve
d.
Type
s of
Diff
eren
ces
–“V
alue
Cre
atio
n” E
xam
ples
•C
ash
Ren
t due
aft
er h
arve
st•
Hun
ting
rig
hts
•G
rain
bin
sto
rage
•F
lexi
ble
cash
leas
e•
Far
m c
lean
up
BATN
A
•W
hat i
s yo
ur b
est a
lter
nati
ve to
a n
egot
iate
d ag
reem
ent?
•W
hat w
as th
e B
AT
NA
for
the
wid
est n
egot
iati
on?
Can
be
good
Can
be
bad
Boo
k: G
etti
ng to
Yes
: Neg
otia
ting
Agr
eem
ent W
itho
ut G
ivin
g In
Aut
hors
: Rog
er F
ishe
r, W
illi
am U
ry, B
ruce
Pat
ton
Zopa
-Zon
e of
Pos
sibl
e Ag
reem
ent
Boo
k: G
etti
ng to
Yes
: Neg
otia
ting
Agr
eem
ent W
itho
ut G
ivin
g In
Aut
hors
: Rog
er F
ishe
r, W
illi
am U
ry, B
ruce
Pat
ton
Thom
as—
Kilm
ann
Con
flict
Mod
e
•C
ompl
ete
surv
ey
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
18A
ll R
ight
s Res
erve
d.
Thom
as—
Kilm
ann
Con
flict
Mod
e
Be a
n In
vest
igat
ive
Neg
otia
tor
•D
on’t
just
ask
wha
t, as
k w
hy•
See
k to
rec
onci
le in
tere
sts,
not
dem
ands
•C
reat
e co
mm
on g
roun
d w
ith
unco
mm
on a
llie
s•
Inte
rpre
t dem
ands
as
oppo
rtun
itie
s•
Don
’t d
ism
iss
anyt
hing
as
thei
r pr
oble
m•
Und
erst
and
the
diff
eren
ce b
etw
een
sell
ing
and
nego
tiat
ing
Boo
k: N
egot
iati
on G
enui
sA
utho
rs: D
eepa
k M
alho
rtra
and
Max
Baz
erm
an
Poor
Com
mun
icat
ion
–C
omm
on Is
sues
•U
se e
ffec
tive
pau
ses
•D
on’t
fil
l in
sile
nce
•S
mil
e, k
eep
calm
, use
enc
oura
ging
bod
y la
ngua
ge a
nd c
ount
to te
n
•N
egot
iati
ng a
gain
st y
ours
elf
•W
e av
oid
mak
ing
requ
est w
e fe
el th
e ot
her
part
y w
ill s
ay n
o to
•B
e ge
ntle
and
fea
rles
s, c
an w
ork
favo
rabl
y ei
ther
way
thro
ugh
reci
proc
ity
•P
lay
the
shor
t gam
e•
Don
’t tr
y to
obt
ain
the
com
mit
men
t rig
ht a
way
•W
ork
on m
ovin
g cl
oser
to th
e go
al to
bui
ld c
olla
bora
tion
Adju
stin
g Le
ases
for D
amag
ed (F
lood
ed) G
roun
d
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
19A
ll R
ight
s Res
erve
d.
Adju
stin
g Le
ases
for D
amag
ed (F
lood
ed) G
roun
d
Hea
vyH
ard
Und
erst
andi
ng th
e da
mag
es
Adju
stin
g Le
ases
for D
amag
ed (F
lood
ed) G
roun
d
Har
d W
ork
•Par
ty P
rim
aril
y R
esp
onsi
ble
–L
and
lord
•The
land
lord
bea
rs th
e re
spon
sibi
lity
for
pro
vidi
ng th
e te
nant
wit
h th
ela
nd r
eady
to f
arm
•Tas
ks
incl
ud
ed –
rem
ovin
g b
ran
ches
, cor
n s
talk
s, t
rash
deb
ris,
an
dot
her
ob
stac
les
dep
osit
ed o
n t
he
fiel
d
•Eq
uip
men
t–
ligh
t eq
uip
men
t an
d lo
ts o
f h
and
lab
or
Adju
stin
g Le
ases
for D
amag
ed (F
lood
ed) G
roun
d
Hea
vy W
ork
•Par
ty P
rim
aril
y R
espo
nsib
le -
Lan
dlor
d•T
he la
ndlo
rd b
ears
the
resp
onsi
bili
ty f
or p
rovi
ding
the
tena
nt w
ith
the
land
rea
dy to
far
m
•Tas
ks in
clud
ed –
mov
ing
tops
oil,
rem
ovin
g sa
ndba
rs, f
ixin
g ho
les,
gul
lies
and
ruts
•Equ
ipm
ent–
bull
doze
rs, s
crap
ers,
exc
avat
ors,
and
gra
ders
Adju
stin
g Le
ases
for D
amag
ed (F
lood
ed) G
roun
d
Hea
vy W
ork
-S
and
•Pu
sh t
he
san
d b
ack
into
th
e ri
ver
•Nee
d pe
rmit
fro
m U
S A
rmy
Cor
ps o
f E
ngin
eers
•Per
mit
–R
GP
-11-
02-W
EH
•Pho
ne N
umbe
r 40
2-89
6-08
96•P
erm
it m
ay h
ave
cond
itio
ns s
uch
as v
olum
e pe
r da
y an
d ti
me
of y
ear.
•Dis
pos
al•I
f th
e sa
nd c
onta
ins
feca
l mat
ter,
oil,
or o
ther
che
mic
al p
rodu
cts
it s
houl
d be
disp
osed
of
in a
mun
icip
al s
olid
was
te la
ndfi
ll•R
euse
•If
free
of
cont
amin
ants
may
be
avai
labl
e fo
r re
sale
for
ero
sion
rep
air,
dair
yop
erat
ion
bedd
ing,
roa
d re
pair
, and
oth
er c
onst
ruct
ion
rela
ted
proj
ects
.
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
20A
ll R
ight
s Res
erve
d.
Adju
stin
g Le
ases
for D
amag
ed (f
lood
ed) G
roun
d
Cro
p S
har
e•A
lrea
dy s
hare
s pr
oduc
tion
ris
ks•M
ay n
ot n
eed
to b
e ad
just
ed
Cas
h R
ent
•Ful
l pay
men
t lik
ely
expe
cted
but
the
leas
e ne
eds
to b
e ex
amin
ed
•Und
er g
ener
al c
ontr
actu
al la
w if
an e
vent
ren
ders
the
prop
erty
unus
able
for
the
enti
re g
row
ing
seas
on, t
he te
nant
may
hav
e a
case
for
vaca
ting
the
prem
ise
and
not
mak
ing
any
leas
e pa
ymen
ts f
or20
19.
Wha
t are
the
curr
ent p
rovi
sion
s in
the
leas
e on
dis
aste
r?
Adju
stin
g Le
ases
for D
amag
ed (F
lood
ed) G
roun
d
Wha
t ins
uran
ce a
nd f
arm
pro
gram
s ar
e av
aila
ble
duri
ng th
ese
even
ts?
•P
reve
nt P
lant
•E
QIP
–C
over
Cro
p•
Em
erge
ncy
Con
serv
atio
n P
rogr
ams
•T
hrou
gh F
arm
Ser
vice
Age
ncy
•M
ust d
ocum
ent
•B
efor
e an
d af
ter
pict
ures
•E
quip
men
t use
, sup
plie
s, a
nd la
bor
Talk
wit
h yo
ur C
rop
Insu
ranc
e pr
ovid
er a
nd F
arm
Ser
vice
Age
nt to
und
erst
and
any
impl
icat
ions
fro
m c
hang
es to
a le
ase
agre
emen
t or
entr
ance
into
a p
rogr
am.
Whe
n R
ebui
ldin
g –
Wha
t Sho
uld
You
Reb
uild
?
Nee
d a
com
plet
e S
WO
T a
naly
sis
•S
tren
gths
•W
eakn
esse
s•
Opp
ortu
niti
es•
Thr
eats
Rus
hing
to m
ake
thin
gs th
e w
ay it
was
may
not
be
the
mos
t lon
g-te
rm
bene
fici
al c
ours
e of
act
ion.
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
21A
ll R
ight
s Res
erve
d.
Leas
ing
Con
side
ratio
ns &
Farm
or R
anch
Su
cces
sion
and
Tra
nsfe
rA
llan
Vyh
nale
kE
xten
sion
Edu
cato
rav
yhna
lek@
unl.e
du40
2-47
2-17
71
Topi
cs
•Val
ue o
f a
wri
tten
leas
e•A
ppro
pria
te le
ase
prov
isio
ns•L
ease
tric
ks a
nd ti
ps
•Far
m o
r ra
nch
succ
essi
on a
nd tr
ansf
er c
once
pts
It’s
Not
You
r Gra
ndfa
ther
’s P
lace
Any
mor
e!
•Im
pera
tive
to h
ave
a w
ritt
en le
ase
•V
erba
l or
hand
shak
e le
ase
term
inat
ion
of f
arm
land
•Neb
rask
a le
ases
ass
umed
to s
tart
3/1
/20
•Not
ify
by 6
mon
ths
prio
r –
sob
y9/
1/20
19 (
so to
o la
te f
or ‘
20)
•Use
reg
iste
red
mai
l
•N
ot th
e sa
me
for
past
ure
leas
es
Prof
essi
onal
Far
m M
anag
er
•Con
side
r us
e if
cus
tom
far
min
g or
ren
ting
•Tak
e ca
re o
f m
anag
ing
the
asse
ts –
espe
cial
ly v
alua
ble
for
abse
ntee
owne
rs•C
har g
e be
twee
n 6-
12%
of
the
rent
al r
ate
as th
eir
fee
for
man
agem
ent (
less
on
stra
ight
cas
h re
nt, m
ore
on c
rop
shar
e re
ntag
reem
ents
or
cust
om f
arm
ing)
•D
epen
ds o
n w
hat y
ou a
re a
skin
g th
em to
do
•In
som
e ca
ses,
the
serv
ice
is v
ery
wor
th w
hile
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
22A
ll R
ight
s Res
erve
d.
Type
s of
Cro
plan
d Le
ases
Cro
p S
har
e: l
ando
wne
r re
ceiv
es p
erce
ntag
e of
act
ual c
rop
yiel
d as
pa
ymen
t for
leas
ing
the
agri
cult
ural
land
to te
nant
. Lan
dow
ner
may
sh
are
inpu
t and
pro
duct
ion
cost
s of
rai
sing
the
crop
.
Cas
h L
ease
: la
ndow
ner
rece
ives
an
agre
ed u
pon
cash
pay
men
t am
ount
for
leas
ing
the
agri
cult
ural
land
to th
e te
nant
.
Fle
x L
ease
: la
ndow
ner
and
tena
nt s
et a
bas
e ca
sh r
enta
l rat
e w
hich
ca
n fl
ex u
pon
actu
al c
rop
yiel
ds, p
rice
s, o
r a
com
bina
tion
of
the
two
Com
men
ts:
Cro
p Sh
are
Ren
t Agr
eem
ents
•Lan
dlor
d an
d te
nant
sha
re in
the
expe
nse
and
shar
e in
the
risk
as
soci
ated
wit
h pr
oduc
ing
the
crop
•Ove
r hi
stor
y a
very
fai
r w
ay to
ren
t•C
rop
shar
e ha
s lo
st p
opul
arit
y•L
andl
ords
do
not l
ike
to:
•pa
y ex
pens
es
•w
orry
abo
ut m
arke
ting
thei
r cr
op
Varia
tion
of C
ash
Leas
es –
Flex
Lea
sing
•Bas
e ca
sh le
ase
amou
nt is
est
abli
shed
•The
leas
e va
ries
by
som
e va
riab
le (
met
ric)
•Usu
ally
pri
ce, y
ield
, or
tota
l rev
enue
•Con
side
r es
tabl
ishi
ng li
mit
s on
the
‘fle
x’•U
sual
ly a
low
er a
nd a
n up
per
lim
it
•Bot
h la
ndlo
rd a
nd te
nant
sha
re s
ome
risk
in th
is ty
pe o
f le
ase
Cas
h Le
ases
•Mos
t com
mon
leas
e in
Eas
tern
Neb
rask
a is
a s
trai
ght c
ash
leas
e•T
he la
ndlo
rd r
ecei
ves
$ x
x am
ount
for
leas
ing
one
acre
per
yea
r•:
ease
s ty
pica
lly
star
t aro
und
3/1
and
end
2/28
(sp
ecif
ied
by th
e w
ritt
en le
ase!
)•P
rodu
ctio
n ri
sk is
com
plet
ely
born
by
tena
nt•
Mea
ns th
at th
ey r
ecei
ve a
ll g
ovt.
paym
ents
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
23A
ll R
ight
s Res
erve
d.
Issu
es fo
r Lea
ses
•Fer
tili
ty•P
hosp
horu
s –
prot
ect b
oth
land
lord
and
tena
nt•L
ime
–sh
ould
be
a la
ndlo
rd e
xpen
se•M
anur
e ap
plic
atio
n –
how
oft
en a
nd h
ow m
uch
shou
ld b
e di
scus
sed
•Irr
igat
ion
•Adj
ust r
ent i
f te
nant
pro
vide
s so
me
or a
ll o
f ir
riga
tion
equ
ipm
ent
Issu
es fo
r Lea
ses
•Hun
ting
rig
hts
•All
ow o
r re
tain
–m
ust s
peci
fy
•Sto
ver
•All
ow h
arve
st o
r re
tain
•If
harv
est,
how
oft
en•W
ill t
he r
ent i
ncre
ase
wit
h us
e
•Gra
zing
•All
ow, w
hen,
how
man
y, a
nim
al/f
enci
ng n
eeds
•Eas
emen
ts•D
o th
ey e
xist
and
in w
hat t
erm
s
Leas
e Ti
ps a
nd T
ricks
•Set
leas
e te
rmin
atio
n no
tifi
cati
on d
ate
(is
leas
e al
low
ed to
rol
l-ov
er?)
•Set
leas
e te
rms
re-n
egot
iati
on p
erio
d•I
nclu
de p
enal
ties
for
thin
gs li
ke•U
sing
too
muc
h w
ater
(fr
om a
lloc
atio
n)
•Min
imum
com
mun
icat
ions
–(b
oth
part
ies)
•If
both
par
ties
agr
ee to
any
term
–w
rite
it d
own
Leas
es –
AgLe
ase1
01.o
rg
Lea
se
Pub
lica
tion
s
Fil
labl
eP
DF
F
orm
s
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
24A
ll R
ight
s Res
erve
d.
Farm
/Ran
ch S
ucce
ssio
n/Tr
ansf
er
•Why
we
don’
t pla
n•A
ssum
ptio
ns th
at p
aren
ts m
ake
•Im
port
ance
of
havi
ng a
pla
n (v
isio
n)•S
teps
to tr
ansf
erri
ng th
e fa
rm/r
anch
Whe
n Ar
e W
e Pl
anni
ng to
Ret
ire?
•20
% w
ithi
n th
e ne
xt 1
5 ye
ars
•15
% la
ter
than
15
year
s
•9%
Say
that
they
nev
er p
lan
to r
etir
e (m
aint
ain
full
con
trol
)•
24%
Say
they
pla
n to
sem
i-re
tire
(gi
ving
up
som
e co
ntro
l)•
21%
Say
they
are
alr
eady
sem
i-re
tire
d (g
ave
up s
ome
cont
rol)
So
–54
% a
re n
ot p
lann
ing
to f
ully
ret
ire
from
far
min
g!Ne
bras
ka su
rvey
com
plet
ed in
fall
2017
Why
Are
Far
mer
s R
etiri
ngat
a La
ter A
ge –
or O
nly
Sem
i-ret
iring
?•
Per
cent
of
thos
e re
spon
ding
eit
her
impo
rtan
t or
very
impo
rtan
t•
75%
Hav
e a
diff
icul
t tim
e gi
ving
up
cont
rol o
f fa
rm•
69%
Mod
ern
equi
pmen
t –al
low
s th
em to
far
m lo
nger
•66
% R
elat
e re
tire
men
t to
thei
r ow
n m
orta
lity
•62
% C
anno
t aff
ord
to r
etir
e•
60%
Hea
lthi
er lo
nger
/lon
ger
life
•55
% D
on’t
hav
e a
succ
esso
r•
54%
Don
’t k
now
wha
t els
e th
ey’d
do
•O
n-li
ne s
urve
y, f
all 2
017
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
25A
ll R
ight
s Res
erve
d.
Est
ate
Pla
nn
ing
•“.
.man
y fa
rm f
amil
ies
expe
rien
ce s
igni
fica
nt d
iffi
cult
y in
disc
ussi
ng th
e fu
ture
of
the
fam
ily
farm
.fica
nt d
iffi
cult
y in
M
ore
ofte
n th
an n
ot,
disc
ussi
ng th
e fu
ture
of
the
fam
ily
farm
..M
ore
ofte
n th
an n
ot, ,,
plan
ning
... te
nds
to b
e de
ferr
ed u
ntil
som
e cr
itic
al li
fe e
vent
occ
urs
plan
ning
... te
nds
to b
e de
ferr
ed u
ntil
som
e cr
itim
ecr
iti
pg
pg
whi
ch f
orce
s th
e fa
mil
y to
add
ress
the
mat
ter
y.”
•K
aine
, et a
l, Su
cces
sion
and
Inh
erit
ance
on
Aus
tral
ian
Fam
ily
Far
ms,
TR
DC
Pub
. #19
8, T
he R
ural
Dev
elop
men
t Cen
tre,
U. o
f N
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ngla
nd, A
rmid
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NS
W
Wh
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on
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e P
lan
?
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e as
sum
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on’t
like
to P
lan
•It i
s m
enta
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ork’
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our
own
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tali
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ome
just
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’t w
ant t
o th
ink
abou
t dea
th•W
e ar
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raid
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at if
we
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som
eth
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it w
ill b
e w
ron
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n t
he
futu
re)
Circ
le o
f Ina
ctio
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2.I
go t
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tin
g,or
mee
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ith
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wye
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ow!
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d,
com
pli
cate
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h
ave
a h
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e
4.N
Oac
tion
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en a
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shou
ldh
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nnin
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Sequ
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lan
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atas
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t w
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ily
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re o
pti
ons
Op
tion
s p
ick
ed
Su
cces
sion
pla
n d
evel
oped
/sig
ned
–C
ongr
atu
lati
ons!
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
26A
ll R
ight
s Res
erve
d.
The
Pare
nt’s
Gen
erat
ions
Mak
e Se
vera
l As
sum
ptio
ns–
Are
They
Rig
ht?
•In
som
e ca
ses
–th
ese
assu
mpt
ions
are
gre
at –
how
ever
……
..
Wha
t do
Your
Ass
ets
Look
Lik
e at
Ret
irem
ent?
Beg
in w
ith
the
end
in m
ind!
•Tur
ning
in th
e ke
ys o
n re
tire
men
t day
–w
hat d
oes
that
ope
rati
onlo
ok li
ke?
•Who
are
you
han
ding
the
keys
to?
•Nex
t gen
erat
ion
•Auc
tion
eer
•Ren
ter
•Est
abli
sh th
at “
Vis
ion”
fir
st
Phas
es o
f Tra
nsfe
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Nex
t Gen
erat
ion
1.Te
stin
g (w
ill t
he n
ext g
ener
atio
n do
‘al
l’ ta
sks?
)
2.M
anag
emen
t Tra
nsfe
r (p
lann
ed w
ith
tim
ing)
3.A
sset
or
Ent
erpr
ise
Tra
nsfe
r (l
ives
tock
or
mac
hine
ry)
4.W
hole
Far
m/B
usin
ess
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mla
nd)
Tra
nsfe
r•
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all w
ith
wri
tten
pla
ns (
Bus
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s P
lan)
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ave
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uctu
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clud
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it p
lans
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se jo
b de
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Succ
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ul F
arm
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side
r bo
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and
youn
ger
gene
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ons
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w th
at f
air
and
equa
l are
not
the
sam
e•H
ave
a pl
an th
at is
equ
itab
le•U
se c
ombi
nati
ons
of w
ills
, tru
sts,
LL
Cs,
and
oth
er to
ols
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ontr
olho
w th
e as
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are
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sed
•Hav
e a
good
team
of
prof
essi
onal
s he
lpin
g
© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
27A
ll R
ight
s Res
erve
d.
Farm
/Ran
ch S
ucce
ssio
n/Tr
ansi
tion
Team
Get
you
r “T
eam
” to
geth
er!
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yer
•Ag
Ban
ker
•Fin
anci
al A
dvis
or•C
PA•I
nsur
ance
Age
nt
Item
s to
get
tog
eth
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ore
seei
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an a
ttor
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•L
ist o
f yo
ur a
sset
s•
Wha
t you
ow
n –
how
you
ow
n it
•W
hat y
ou o
we
(if
anyt
hing
)•
Wha
t do
you
wan
t to
do w
ith
your
ass
ets
Web
site
s to
Get
Mor
e In
form
atio
n
•ht
tp:/
/age
con.
unl.e
du/s
ucce
ssio
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ourc
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© 2
020
UN
L La
nd M
gt. P
rogr
am
Jans
en e
t al.
28A
ll R
ight
s Res
erve
d.
Che
rry
Siou
x
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rill
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n
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nt
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ball
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ur
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ne
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er
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ker
Loga
n
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asG
arfie
ldSc
otts
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ff
Hol
t69
.50
Cus
ter
76.0
0
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oln
52.5
0
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idan
23.5
0
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den
38.0
0
Daw
es28
.00
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46.0
0
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k43
.50
Knox
199.
00
Dun
dy43
.00
Buffa
lo10
8.00
Cha
se49
.50
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tier
56.0
0
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son
99.5
0
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e15
2.00
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ins
50.5
0
Che
yenn
e34
.00
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es55
.00
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Butte
32.0
0
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ar22
0.00
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as71
.50
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60.0
0Bo
one
177.
00Pl
atte
198.
00
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lope
134.
00
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e17
4.00
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lan
75.0
0
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r19
4.00
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e13
6.00
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165.
00
Pier
ce17
8.00
Cla
y13
4.00
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y10
0.00
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s20
4.00
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er12
0.00
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s12
5.00
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l12
2.00
Dod
ge20
8.00
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ders
198.
00
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ps96
.50
McP
hers
on54
.00
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ard
166.
00
Deu
el37
.00
How
ard
130.
00
Cum
ing
244.
00
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hcoc
k52
.00
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eley
100.
00
Burt
221.
00
Fillm
ore
136.
00
Fran
klin
105.
00
Keya
Pah
a59
.00
Web
ster
98.0
0
Whe
eler
96.0
0
Nuc
kolls
125.
00
Mad
ison
190.
00
Way
ne23
1.00
Red
Willo
w59
.00
Sher
man
94.5
0
Jeffe
rson
134.
00
Kear
ney
113.
00
Col
fax
209.
00
Paw
nee
136.
00
Lanc
aste
r17
3.00
Boyd
107.
00
Dix
on21
8.00
Mer
rick
116.
00
Nan
ce14
8.00
Polk
171.
00
Gos
per
74.0
0
Ham
ilton
154.
00
Stan
ton
220.
00
Ric
hard
son
198.
00
Nem
aha
179.
00
Thur
ston
233.
00
John
son
155.
00
Dou
glas
203.
00
Dak
ota
240.
00
Sarp
y19
9.00
Was
hing
ton
222.
00
¯0
3060
9012
015
Mile
s
Cas
h R
ent P
aid
Dol
lars
Per
Acr
e
179.
01 -
244.
00
136.
01 -
179.
00
76.0
1 - 1
36.0
0
46.0
1 - 7
6.00
23.5
0 - 4
6.00
Not
Pub
lishe
d
2019
Non
-Irrig
ated
Cro
plan
d C
ash
Ren
t Pai
d Pe
r Acr
eN
ebra
ska
Sour
ce: U
SD
A N
atio
nal A
gric
ultu
ral S
tatis
tics
Ser
vice
Sept
embe
r 10,
201
9
Web
site
: http
s://w
ww
.nas
s.us
da.g
ov/S
tatis
tics_
by_S
tate
/Neb
rask
a/Pu
blic
atio
ns/C
ount
y_Es
timat
es/
29
Gar
den
Gra
nt
Oto
e
Arth
ur
Che
yenn
e
Blai
ne
Cas
s
Boyd
Bann
er
Hoo
ker
Thom
as
Deu
el
Keya
Pah
a
Way
ne
Paw
nee
Ric
hard
son
Thur
ston
Sarp
y
Lanc
aste
r
Stan
ton
Dak
ota
Che
rry
176.
00
Cus
ter
224.
00
Linc
oln
198.
00
Hol
t21
8.00
Siou
x16
5.00
Sher
idan
145.
00
Mor
rill
156.
00
Daw
es15
0.00
Brow
n16
2.00
Knox
262.
00
Keith
183.
00
Roc
k16
0.00
Buffa
lo24
4.00
Dun
dy17
0.00
Cha
se19
9.00
Kim
ball
135.
00
Fron
tier
179.
00
Daw
son
223.
00
Gag
e25
6.00
Perk
ins
183.
00
Box
Butte
185.
00
Ced
ar28
8.00
Hay
es22
7.00
Furn
as19
0.00
Boon
e26
7.00
Plat
te27
3.00
Ante
lope
256.
00
Butle
r27
0.00
Salin
e24
0.00
York
261.
00
Pier
ce24
8.00
Har
lan
217.
00
Cla
y25
3.00
Loga
n18
0.00
Loup
175.
00
Valle
y22
9.00
Thay
er24
6.00
Adam
s25
4.00
Hal
l24
2.00
Dod
ge26
1.00
Saun
ders
257.
00
Phel
ps23
9.00
McP
hers
on13
6.00
Sew
ard
279.
00
How
ard
218.
00
Cum
ing
294.
00
Hitc
hcoc
k18
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Gar
field
216.
00
Gre
eley
220.
00
Burt
248.
00
Fillm
ore
260.
00
Fran
klin
220.
00W
ebst
er22
9.00
Whe
eler
221.
00
Nuc
kolls
258.
00
Mad
ison
262.
00Sc
otts
Blu
ff17
5.00
Red
Willo
w18
6.00
Sher
man
224.
00
Jeffe
rson
230.
00
Kear
ney
236.
00
Col
fax
266.
00Dix
on28
9.00
Mer
rick
234.
00
Nan
ce24
7.00
Polk
263.
00
Gos
per
214.
00
Ham
ilton
245.
00
Nem
aha
233.
00Jo
hnso
n25
1.00
Dou
glas
235.
00
Was
hing
ton
283.
00
¯0
3060
9012
015
Mile
s
Cas
h R
ent P
aid
Dol
lars
Per
Acr
e
267.
01 -
294.
00
240.
01 -
267.
00
199.
01 -
240.
00
165.
01 -
199.
00
135.
00 -
165.
00
Not
Pub
lishe
d
2019
Irrig
ated
Cro
plan
d C
ash
Ren
t Pai
d Pe
r Acr
eN
ebra
ska
Sour
ce: U
SD
A N
atio
nal A
gric
ultu
ral S
tatis
tics
Ser
vice
Sept
embe
r 10,
201
9
Web
site
: http
s://w
ww
.nas
s.us
da.g
ov/S
tatis
tics_
by_S
tate
/Neb
rask
a/Pu
blic
atio
ns/C
ount
y_Es
timat
es/
30
Che
rry
Hol
t
Mor
rill
Kim
ball
Burt
Che
yenn
e
Boon
e
Deu
el
Scot
ts B
luff
Dak
ota
Cus
ter
30.0
0
Siou
x9.
50
Linc
oln
18.5
0
Sher
idan
13.0
0
Gar
den
15.5
0
Daw
es13
.50
Knox
45.5
0
Keith
17.0
0
Brow
n27
.50
Roc
k25
.00
Gag
e41
.00
Dun
dy18
.00
Buffa
lo39
.00
Gra
nt17
.00
Cha
se19
.00
Fron
tier
27.5
0
Daw
son
35.0
0
Ced
ar64
.00
Plat
te56
.00
Perk
ins
22.0
0
Arth
ur17
.00
Blai
ne18
.00
Hay
es22
.50
Box
Butte
12.5
0
Oto
e44
.50
Furn
as29
.50
Bann
er10
.50
York
58.0
0
Cla
y30
.50
Loup
24.5
0
Butle
r51
.50
Cas
s49
.50
Hoo
ker
14.0
0
Hal
l42
.50
Ante
lope
39.5
0
Valle
y47
.00
Salin
e44
.00
Loga
n16
.50
Pier
ce69
.50
Thom
as16
.50
Har
lan
30.0
0
Dix
on51
.50
Thay
er40
.50
Dod
ge54
.50
Adam
s47
.50
Saun
ders
48.0
0
Phel
ps40
.00
Polk
42.0
0
McP
hers
on21
.00
Sew
ard
48.5
0
How
ard
43.0
0
Cum
ing
71.5
0
Hitc
hcoc
k21
.00
Gar
field
27.5
0
Gre
eley
39.0
0
Fillm
ore
38.0
0
Fran
klin
32.0
0
Keya
Pah
a27
.00
Web
ster
41.0
0
Whe
eler
29.5
0
Nuc
kolls
44.0
0
Mad
ison
55.5
0
Col
fax
74.0
0
Way
ne80
.50
Red
Willo
w22
.50
Sher
man
43.5
0
Jeffe
rson
44.5
0
Kear
ney
33.5
0
Paw
nee
47.0
0
Boyd
37.5
0
Lanc
aste
r45
.00
Nan
ce42
.50
Mer
rick
47.0
0
Gos
per
35.0
0
Ham
ilton
37.5
0
Stan
ton
68.0
0
Ric
hard
son
44.0
0
Nem
aha
50.0
0
Thur
ston
62.0
0
John
son
46.0
0
Sarp
y37
.00
Dou
glas
65.0
0
Was
hing
ton
62.5
0
¯0
3060
9012
015
Mile
s
Cas
h R
ent P
aid
Dol
lars
Per
Acr
e
58.0
1 - 8
0.50
45.5
1 - 5
8.00
33.5
1 - 4
5.50
21.0
1 - 3
3.50
9.50
- 21
.00
Not
Pub
lishe
d
2019
Pas
ture
Cas
h R
ent P
aid
Per A
cre
Neb
rask
a
Sour
ce: U
SD
A N
atio
nal A
gric
ultu
ral S
tatis
tics
Ser
vice
Sept
embe
r 10,
201
9
Web
site
: http
s://w
ww
.nas
s.us
da.g
ov/S
tatis
tics_
by_S
tate
/Neb
rask
a/Pu
blic
atio
ns/C
ount
y_Es
timat
es/
31
agecon.unl.edu/cornhuskereconomics
Cornhusker Economics
It is the policy of the University of Nebraska–Lincoln not to discriminate based upon age, race, ethnicity, color, national origin, gender-identity, sex, pregnancy, disability, sexual orientation, genetic information, veteran’s status, marital status, religion or political affiliation.
August 15, 2018
2018 Cash Lease Adjustments on Irrigation Equipment for Cropland Rental Arrangements in Nebraska
The Nebraska Farm Real Estate Market Highlights Report 2017-2018 provides recent trends on land val-ues and rental rates for landowners, tenants, and stakeholders. Each year the special feature section co-vers topics on new or emerging issues related to agri-cultural land in Nebraska. These topics reflect interest expressed by panel members and readership of the Nebraska Farm Real Estate Market Highlights Report. The special feature section in 2018 focuses on cash lease adjustments on irrigation equipment for cropland rental arrangements in Nebraska. Results from this special feature section of the survey are summarized in this article.
Nebraska farmers use irrigation systems across the state on cropland acres for grain and forage produc-tion. These systems require large financial outlays for the purchasing and installation of the irrigation equipment. Repairs and maintenance are required for the upkeep on the system each year. Landlords and tenants commonly negotiate the maintenance for irri-gation equipment on rented cropland. The entity re-sponsible for annually maintaining and repairing the irrigation systems as part of a cash lease contract is typically either the landlord and tenant, tenant, land-lord, or other.
Panel members reported the entity responsible for maintaining an irrigation system as part of a cash lease arrangement in Nebraska for 2018 (Figure 1). Ranked in order of which entity maintains the system includes the landlord and tenant, tenant, landlord, and other at 48.4, 34.7, 14.7, and 2.2 percent. An other entity may be an irrigation company or related busi-ness providing professional upkeep, maintenance, and installation services for a fee.
Market Report Year Ago
4 Wks Ago 8-10-18
Livestock and Products, Weekly Average Nebraska Slaughter Steers, 35-65% Choice, Live Weight. . . . . . . * * * Nebraska Feeder Steers, Med. & Large Frame, 550-600 lb. . . . . 171.63 186.85 177.62 Nebraska Feeder Steers, Med. & Large Frame 750-800 lb. . .. . 142.39 163.51 162.42 Choice Boxed Beef, 600-750 lb. Carcass. . . . . . . . . . . . . . 201.37 206.48 205.91 Western Corn Belt Base Hog Price Carcass, Negotiated . . . . . . . . . . . . . .. 77.91 72.72 43.68 Pork Carcass Cutout, 185 lb. Carcass 51-52% Lean. . . . . . . . . . . . . . . . . . . . 94.19 82.47 70.35 Slaughter Lambs, wooled and shorn, 135-165 lb. National. . . . . . . 336.10 167.49 160.18 National Carcass Lamb Cutout FOB. . . . . . . . . . . . . . . . . . . . . . . . . . . 421.40 384.71 370.67
Crops, Daily Spot Prices Wheat, No. 1, H.W. Imperial, bu. . . . . . . . . . . . . . . . . . . . . 3.32 4.35 4.91 Corn, No. 2, Yellow Columbus, bu. . . . . . . . . . . . . . . . 3.35 3.27 3.40 Soybeans, No. 1, Yellow Columbus, bu. . . . . . . . . . . . . .. . . 8.48 7.60 7.68 Grain Sorghum, No.2, Yellow Dorchester, cwt. . . . . . . . . . . . . . . . . . 5.58 4.96 5.29 Oats, No. 2, Heavy Minneapolis, Mn, bu. . . . . . . . . . . . . . . 3.07 2.79 2.91
Feed Alfalfa, Large Square Bales, Good to Premium, RFV 160-185 Northeast Nebraska, ton. . . . . . . . . . . * * * Alfalfa, Large Rounds, Good Platte Valley, ton. . . . . . . . . . . . . . . . . 82.50 107.50 102.50 Grass Hay, Large Rounds, Good Nebraska, ton. . . . . . . . . . . . . . .. . . . 85.00 107.50 150.00 Dried Distillers Grains, 10% Moisture Nebraska Average. . . . . . . . . . . . . . . . 116.00 100.00 122.50 Wet Distillers Grains, 65-70% Moisture Nebraska Average. . . . . . . . . . . . . . . . 38.50 36.95 40.00
No Market
32
Source: UNL Nebraska Farm Real Estate Market Survey, 2018. Source: UNL Nebraska Farm Real Estate Market Survey, 2018.
Figure 2. Discount on Cash Rent per Acre When Tenant Owns Pivot for Irrigation System in Nebraska
Figure 1. Entity Responsible four Maintaining Irrigation System as Part of Cash Lease Arrangement in Nebraska.
In cases where tenants are solely responsible for maintain-ing the system, a discount on the cash rent paid for the irrigated cropland might be made to account for the in-vestment of time and repairs. In certain instances, panel members indicated that the landlord may still be responsi-ble for repairs after a tenant has met a certain monetary deductible for repairs on the system. The skill, interest, and time of the landlord and tenant engaged in an irrigat-ed cropland lease arrangement have a strong influence on the negotiations for which entity maintains the system necessary for delivery of the water across the parcel of ground.
A tenant might pay for the replacement of a pivot on irri-gated cropland after an older system becomes depreciated out or functionally obsolescent and the landlord does not have the financial ability or desire to update equipment. In these cases, a discount may be applied to the irrigated rent when the tenant provides the center pivot. According to
Power Unit Discount per Acre
$0 $1 to $9 $10 to $20 $20+
- - - - - - - - - - - - - - - - Percent of Respondents - - - - - - - - - - -- - - - - - - -System Type
Diesel Engine 23 34 35 8Propane or Natural Gas Engine 23 43 31 3
Electric Motor 20 42 26 12
panel members, the discounts of $26 to $50 and $10 to $25 per acre account for 58.5 and 30.6 percent of the discounts on cash rent when the tenant owns the center pivot (Figure 2). About 8.5 percent of discounts are greater than $51 per acre and 2.4 percent account for a discount of $0 per acre.
The other major irrigation system component a tenant might bring to a cash lease agreement could be the power unit for pumping the water. Common power units used on irrigated cropland in Nebraska include either a diesel engine, propane or natural gas engine, or electric motor. In these cases, a discount may be ap-plied to the irrigated rent when the tenant provides the power unit for the irrigation system. In Table 1 about 70 percent of the discount per acre rates for the three power units were divided between $1 to $9 and $10 to $20. About 20 percent of irrigated cropland did not receive a discount and a very small percent have a
Table 1. Discount on Cash Rent per Acre When Tenant Owns Power Unit for Irrigation System in Nebraska
Source: UNL Nebraska Farm Real Estate Market Survey, 2018.
33
discount greater than $20 per acre. Panel members report-ed newer diesel, propane, or natural gas engines might have higher discount rates due to the expenses associated with complying with the emissions standards on these power unit exhausts.
Survey results shown and discussed in this report are find-ings from the University of Nebraska–Lincoln 2018 Ne-braska Farm Real Estate Market Survey. Complete results from the survey may be found at the Nebraska Farm Real Estate website: http://agecon.unl.edu/realestate
Please address questions regarding the 2018 Nebraska Farm Real Estate Survey to Jim Jansen at 402-261-7572 or [email protected].
References
Jansen, J. A. & J. Stokes. (2018, June). Nebraska Farm Real Estate Market Highlights Survey and Report. Nebraska Farm Real Estate Market Developments Highlights 2017-2018, 196, 1-56. Department of Agricultural Economics, University of Nebraska–Lincoln.
Jim Jansen, 402-261-7572 Agricultural Economist
Department of Agricultural Economics University of Nebraska-Lincoln
Jeff Stokes Hanson-Clegg-Allen Endowed Chair
Department of Agricultural Economics University of Nebraska-Lincoln
34
agecon.unl.edu/cornhuskereconomics
Cornhusker Economics
It is the policy of the University of Nebraska–Lincoln not to discriminate based upon age, race, ethnicity, color, national origin, gender-identity, sex, pregnancy, disability, sexual orientation, genetic information, veteran’s status, marital status, religion or political affiliation.
July 3, 2019
Cover Crop Utilization across Nebraska and Implications for Cropland Lease Arrangements in 2019
The Nebraska Farm Real Estate Market Survey and Report 2018-2019 provides insight on recent trends in the market value of land and cash rental across the state. Each year the special feature section from this report covers topics on new or emerging issues relat-ed to the agricultural land industry in Nebraska. These topics reflect interest expressed by panel mem-bers and readership of the Nebraska Farm Real Es-tate Market Highlights Reports. The special feature section in 2019 focuses on trends and considerations for cover crops across Nebraska and implications on cropland lease arrangements. Findings from the 2017 Census of Agriculture in Ta-ble 1 provide an overview of the utilization of cover crops across the eight districts of the state (USDA-NASS, 2019). Approximately 748 thousand acres of cover crops were grown by about 38 thousand opera-tors on approximately 22 million acres of cropland across Nebraska in 2017. Cover crops were planted on about 3.4 percent of cropland acres across the state by 4,419 operators. The number of cropland acres in each district varied greatly across the state. Utilization of cover crops also varied greatly across the eight regions. Arid are-as such as the Northwest, North, and Southwest Dis-tricts tended to grow around 50 thousand acres of cover crops on roughly 2.4 percent of the cropland acres. The Northeast, Central and East Districts each planted around 100,000 acres or more of cover crops on roughly 4.2 percent of the cropland acres. The number of operators in each of these regions plant-ing cover crops also varied. In percentage terms, the cropland operators planting cover crops varied from a low of 7.4 percent in the Northwest District com-pared to a high 14.8 percent in the Central District.
Market Report Year Ago
4 Wks Ago 6‐28‐19
Livestock and Products, Weekly Average Nebraska Slaughter Steers, 35-65% Choice, Live Weight. . . . . . . NA * * Nebraska Feeder Steers, Med. & Large Frame, 550-600 lb. . . . . NA NA 175.56 Nebraska Feeder Steers, Med. & Large Frame 750-800 lb. . .. . NA NA 145.77 Choice Boxed Beef, 600-750 lb. Carcass. . . . . . . . . . . . . . NA 223.40 219.55 Western Corn Belt Base Hog Price Carcass, Negotiated . . . . . . . . . . . . . .. NA 75.47 NA Pork Carcass Cutout, 185 lb. Carcass 51-52% Lean. . . . . . . . . . . . . . . . . . . . NA 182.86 72.66 Slaughter Lambs, wooled and shorn, 135-165 lb. National. . . . . . . NA 155.52 156.37 National Carcass Lamb Cutout FOB. . . . . . . . . . . . . . . . . . . . . . . . . . . NA 389.08 392.01
Crops, Daily Spot Prices Wheat, No. 1, H.W. Imperial, bu. . . . . . . . . . . . . . . . . . . . . NA 4.41 3.94 Corn, No. 2, Yellow Columbus, bu. . . . . . . . . . . . . . . . NA 4.02 4.05 Soybeans, No. 1, Yellow Columbus, bu. . . . . . . . . . . . . .. . . NA 7.80 7.92 Grain Sorghum, No.2, Yellow Dorchester, cwt. . . . . . . . . . . . . . . . . . NA 6.50 6.34 Oats, No. 2, Heavy Minneapolis, Mn, bu. . . . . . . . . . . . . . . NA 3.55 3.20
Feed Alfalfa, Large Square Bales, Good to Premium, RFV 160-185 Northeast Nebraska, ton. . . . . . . . . . . NA * 177.00 Alfalfa, Large Rounds, Good Platte Valley, ton. . . . . . . . . . . . . . . . . NA 150.00 * Grass Hay, Large Rounds, Good Nebraska, ton. . . . . . . . . . . . . . .. . . . NA 97.50 * Dried Distillers Grains, 10% Moisture Nebraska Average. . . . . . . . . . . . . . . . NA 130.00 140.50 Wet Distillers Grains, 65-70% Moisture Nebraska Average. . . . . . . . . . . . . . . . NA 50.00 48.50
No Market
35
When planting a cover crop across Nebraska, the motiva-tion of the landowner or operator may vary depending up-on their agronomic needs and/or management require-ments. Increased interest in cover crops in recent years has come from the perceived benefits to the land and mitigation of environmental issues. Cover crops are used to reduce soil degradation (i.e. erosion) as well as enhance soil quality (i.e. organic matter and nutritive content). These effects may take multiple years to fully materialize but they also tend to persist for several years into the future. Grazing the cover crops or harvesting for forage are perceived as viable op-tions for generating benefits on a more immediate basis. The underlying motivation for utilizing cover crops re-mains important as the operator may incur additional es-tablishment and termination expenses for the land in the year of use while the benefits provided may be spread out over several years into the future. Figure 1 summarizes the major reasons for planting cover crops across Nebraska.
Panel members reported environmental benefits such as soil health and conservation accounted for nearly 60 per-cent of the reasoning or motivation behind utilizing cover crops. Livestock grazing and use as a secondary forage in a rotation accounted for an additional 33.6 percent of the reasoning for planting a cover crop on an agricultural prop-erty. An ability to obtain cost-share funding only attributed to about eight percent of the motivation behind adopting this practice.
Figure 1. Reasons for Planting Cover Crops on Cropland in Nebraska
Source: UNL Nebraska Farm Real Estate Market Survey, 2019.
Division of cover crop establishment expenses remains a provision to consider in a cropland lease arrangement. Benefits from utilizing a cover crop may exceed the length of the current lease. Figure 2 summarizes the dol-lar per acre rental discount on a cropland lease provided to a tenant when planting a cover crop.
Figure 2. Rental Discount in Dollars per Acre on Land Lease When Tenant Plants Cover Crops in Nebraska
Source: UNL Nebraska Farm Real Estate Market Survey, 2019.
Panel members indicated that slightly over 80 percent of land leases do not provide a discount to tenants for planting cover crops. About 15 percent of leases pro-vided a small discount, between $1 and $9 per acre. Opportunities exist in lease negotiations to more equi-tability divide cover crop expenses. Survey results shown and discussed in this report are findings from the University of Nebraska–Lincoln 2019 Nebraska Farm Real Estate Market Survey. Complete results from the survey may be found at the Nebraska Farm Real Estate website: http://agecon.unl.edu/realestate. Please address questions regarding preliminary esti-mates from the 2018 Nebraska Farm Real Estate Survey to Jim Jansen at (402) 261-7572 or [email protected].
36
County and Agricultural
Statistics District
Planted Acres Cropland Acres Planted to
Cover Crops
Number of Operators Cropland Operators Planted
Cover Crops Cover Crops Cropland Planted Cover Crops
Planted Cropland
- - - - - - Acres - - - - - - - - - Percent - - - - - - - - - Number - - - - - - - - - Percent - - -Banner 1,710 191,224 0.9 14 193 7.3 Box Butte 11,241 346,638 3.2 31 329 9.4 Cheyenne 3,881 528,751 7.3 29 492 6.0 Dawes 2,383 174,531 1.4 22 368 6.0 Deuel 1,256 226,814 0.6 5 201 2.5 Garden 2,426 166,330 1.5 8 179 4.5 Kimball 2,740 410,680 0.7 16 369 4.3 Morrill 11,727 242,450 4.8 37 351 10.5 Scotts Bluff 7,619 218,126 3.5 63 573 11.0 Sheridan 6,152 301,456 2.0 28 416 6.7 Sioux 1,749 97,637 1.8 21 211 10.0
Northwest 52,884 2,904,637 1.8 274 3,682 7.4
Arthur 730 31,693 2.3 8 61 13.1 Blaine 395 28,818 1.4 6 58 10.3 Boyd 2,511 135,575 1.9 22 241 9.1 Brown 5,116 108,102 4.7 18 181 9.9 Cherry 3,898 383,698 1.0 19 377 5.0 Garfield 1,250 66,383 1.9 13 121 10.7 Grant b 50,552 - 1 43 2.3 Holt 27,584 607,954 4.5 130 899 14.5 Hooker b 6,797 - 1 20 5.0 Keya Paha 3,851 95,619 4.0 13 170 7.6 Logan 999 41,865 2.4 7 65 10.8 Loup 845 24,049 3.5 9 93 9.7 McPherson 932 22,733 4.1 4 50 8.0 Rock 2,050 121,374 1.7 14 148 9.5 Thomas b 7,406 - 3 29 10.3 Wheeler 7,828 87,779 8.9 38 130 29.2
North 57,989 1,820,397 3.2 306 2,686 11.4
Antelope 23,516 364,429 6.5 117 583 20.1 Boone 9,321 319,202 2.9 67 470 14.3 Burt 3,348 275,222 1.2 42 476 8.8 Cedar 8,347 393,200 2.1 87 692 12.6 Cuming 11,672 330,140 3.5 82 691 11.9 Dakota 81 151,099 0.1 3 244 1.2 Dixon 6,403 221,799 2.9 62 463 13.4 Knox 10,298 323,551 3.2 109 792 13.8 Madison 25,538 312,084 8.2 141 593 23.8 Pierce 14,727 275,201 5.4 119 540 22.0 Stanton 12,148 203,713 6.0 65 493 13.2 Thurston 2,714 206,766 1.3 19 279 6.8 Wayne 5,772 253,645 2.3 47 401 11.7
Northeast 133,885 3,630,051 3.7 960 6,717 14.3
Table continued on next page.
Table 1. Cover Crop Practices for Cropland and Operators in 2017, by Agricultural Statistics District in Nebraskaa
37
Table 1. Cover Crop Practices for Cropland and Operators in 2017, by Agricultural Statistics District in Nebraskaa (continued)
Table continued on next page.
County and Agricultural
Statistics District
Planted Acres Cropland Acres Planted to
Cover Crops
Number of Operators Cropland Operators Planted
Cover Crops Cover Crops Cropland Planted Cover Crops
Planted Cropland
- - - - - - Acres - - - - - - - - - Percent - - - - - - - - - Number - - - - - - - - - Percent - - - Buffalo 10,066 324,488 3.1 70 744 9.4 Custer 34,485 481,876 7.2 175 779 22.5
Dawson 12,893 303,662 4.2 62 518 12.0 Greeley 10,719 156,471 6.9 74 321 23.1 Hall 4,955 272,034 1.8 30 489 6.1 Howard 14,522 177,984 8.2 97 504 19.2 Sherman 3,615 158,959 2.3 34 302 11.3 Valley 7,230 172,629 4.2 43 292 14.7
Central 98,485 2,048,103 4.8 585 3,949 14.8 Butler 19,312 319,085 6.1 94 600 15.7 Cass 7,478 306,383 2.4 71 628 11.3 Colfax 15,898 240,401 6.6 81 443 18.3 Dodge 7,903 312,456 2.5 59 627 9.4 Douglas 3,808 81,581 4.7 26 303 8.6 Hamilton 17,796 286,661 6.2 49 485 10.1 Lancaster 14,361 362,935 4.0 133 1,547 8.6 Merrick 12,302 201,497 6.1 60 388 15.5 Nance 10,285 158,833 6.5 62 311 19.9 Platte 18,908 336,411 5.6 96 768 12.5 Polk 8,274 224,983 3.7 31 407 7.6 Sarpy 1,078 92,986 1.2 38 348 10.9 Saunders 17,747 436,188 4.1 110 952 11.6 Seward 18,924 310,452 6.1 104 811 12.8 Washington 1,949 215,935 0.9 34 602 5.6 York 10,193 327,256 3.1 54 475 11.4
East 186,216 4,214,043 4.4 1,102 9,695 11.4 Chase 8,375 322,955 2.6 28 244 11.5 Dundy 1,322 210,461 0.6 14 245 5.7 Frontier 6,024 203,805 3.0 35 243 14.4 Hayes 5,046 195,667 2.6 17 180 9.4 Hitchcock 662 228,336 0.3 16 241 6.6 Keith 7,805 226,675 3.4 21 245 8.6 Lincoln 23,661 421,610 5.6 87 687 12.7 Perkins 6,302 432,062 1.5 31 343 9.0 Red Willow 1,656 248,186 0.7 16 258 6.2
Southwest 60,853 2,489,757 2.4 265 2,686 9.9
38
Table 1. Cover Crop Practices for Cropland and Operators in 2017, by Agricultural Statistics District in Nebraskaa (continued)
County and Agricultural
Statistics District
Planted Acres Cropland Acres Planted to
Cover Crops
Number of Operators Cropland Operators Planted
Cover Crops Cover Crops Cropland Planted Cover Crops
Planted Cropland
- - - - - - Acres - - - - - - - - - Percent - - - - - - - - - Number - - - - - - - - - Percent - - -Adams 15,816 300,549 5.3 55 439 12.5 Franklin 10,426 187,011 5.6 44 275 16.0
Furnas 2,571 291,461 0.9 20 315 6.3 Gosper 7,823 150,248 5.2 41 225 18.2 Harlan 4,330 220,639 2.0 40 224 17.9 Kearney 28,534 244,933 11.6 67 299 22.4 Phelps 7,534 277,090 2.7 41 328 12.5 Webster 6,213 206,158 3.0 35 326 10.7 South 83,247 1,878,089 4.4 343 2,431 14.1
Clay 6,836 259,454 2.6 31 363 8.5 Fillmore 7,011 305,326 2.3 35 404 8.7 Gage 8,900 449,429 2.0 88 987 8.9 Jefferson 3,002 283,739 1.1 36 517 7.0 Johnson 8,544 137,665 6.2 32 446 7.2 Nemaha 6,177 229,970 2.7 62 365 17.0 Nuckolls 8,344 248,692 3.4 65 381 17.1 Otoe 5,506 331,038 1.7 58 718 8.1 Pawnee 1,189 183,745 0.6 19 407 4.7 Richardson 7,316 272,419 2.7 73 630 11.6 Saline 4,819 305,041 1.6 41 653 6.3 Thayer 5,559 251,004 2.2 44 367 12.0 Southeast 73,203 3,257,522 2.2 584 6,238 9.4
State c 747,903 22,242,599 3.4 4,419 38,084 11.6
References Jansen, J. A. & J. Stokes. (2019, June). Nebraska Farm
Real Estate Market Highlights Survey and Report. Nebraska Farm Real Estate Market Developments Highlights 2018-2019, 196, 1-63. Department of Agri-cultural Economics, University of Nebraska–Lincoln.
USDA-National Agricultural Statistics Service. (2019). 2017 Census of Agriculture. Chapter 2, Table 41 - Land Use Practices, retrieved June 13, 2019, from United State Department of Agriculture Farm Ser-vices Agency: https://www.nass.usda.gov/Quick_Stats/CDQT/chapter/2/table/41/state/NE/county.
Jim Jansen, 402-261-7572 Assistant Extension Educator
Department of Agricultural Economics University of Nebraska-Lincoln
Jeff Stokes, 402-472-1742 Hanson-Clegg-Allen Endowed Chair
Department of Agricultural Economics University of Nebraska-Lincoln
Jay Parsons, 402-472-1911 Associate Professor,
Department of Agricultural Economics University of Nebraska-Lincoln
Source: a 2017 Census of Agriculture, National Agricultural Statistical Service, USDA. b Value not released due to county-level disclosure. c District values may not sum to state totals due to county-level disclosure.
39
THOMAS-KILMANN CONFLICT MODE QUESTIONNAIRE
Consider situations in which you find your wishes differing from those of another person. How do you usually respond to such situations?
On the following pages are several pairs of statements describing possible behavioral responses. For each pair, please circle the "A" or "B" statement which is most characteristic of your own behavior. In many cases, neither the "A" nor the "B" statement may be very typical of your behavior, but please select the response which you would be more likely to use.
When done answering, transfer your answers to the scoring sheet on the last page, and sum each of the columns.
1. A. There are times when I let others take responsibility for solving the problem.
B. Rather than negotiate the things on which we disagree, I try to stress those things upon which we both agree.
2. A. I try to find a compromise solution.
B. I attempt to deal with all of another's and my concerns.
3. A. I am usually firm in pursuing my goals.
B. I might try to soothe the other's feelings and preserve our relationship.
4. A. I try to find a compromise solution.
B. I sometimes sacrifice my own wishes for the wishes of the other person.
5. A. I consistently seek the other's help in working out a solution.
B. I try to do what is necessary to avoid useless tensions.
6. A. I try to avoid creating unpleasantness for myself.
B. I try to win my position.
40
7. A. I try to postpone the issue until I have had some time to think about it.
B. I give up some points in exchange for others.
8. A. I am usually firm in pursuing my goals.
B. I attempt to get all concerns and issues immediately out in the open.
9. A. I feel that differences are not always worrying about.
B. I make some effort to get my way.
10. A. I am firm in pursuing my goals.
B. I try to find a compromise solution.
11. A. I attempt to get all concerns and issues immediately out in the open.
B. I might try to soothe the other's feelings and preserve our relationship.
12. A. I sometimes avoid taking positions which would create controversy.
B. I will let another have some of their positions if they lets me have some of mine.
13. A. I propose middle ground.
B. I press to get my points made.
14. A. I tell another my ideas and ask them for theirs.
B. I try to show him the logic and benefits of my position.
41
15. A. I might try to soothe the other's feelings and preserve our relationship.
B. I try to do what is necessary to avoid tension.
16. A. I try not to hurt the other's feelings.
B. I try to convince the other person of the merits of my position.
17. A. I am usually firm in pursuing my goals.
B. I try to do what is necessary to avoid useless tensions.
18. A. If it makes the other person happy, I might let them maintain their views.
B. I will let the other person have some of their positions if they let me have some of mine.
19. A. I try to get all concerns and issues immediately out in the open.
B. I try to postpone the issue until I have had some time to think it over.
20. A. I attempt to immediately work through our differences.
B. I try to find a fair combination of gains and losses for both of us.
21. A. In approaching negotiations, I try to be considerate of the other person's feelings.
B. I always lean toward a direct discussion of the problem.
22. A. I try to find a position that is intermediate between mine and another person's.
B. I assert my wishes.
42
23. A. I am often concerned with satisfying all my wishes.
B. There are times when I let others take responsibility for solving problems.
24. A. If the other's position seems important to them, I would try to meet their wishes.
B. I try to get the other person to settle for a compromise.
25. A. I try to show the other person the logic and benefits of my position.
B. In approaching negotiations, I try to be considerate of the other person's wishes.
26. A. I propose a middle ground.
B. I am nearly always concerned with satisfying all my wishes.
27. A. I sometimes avoid taking positions that would create controversy.
B. If it makes the other person happy, I might let them maintain their views.
28. A. I am usually firm in pursuing my goals.
B. I feel that differences are not always worth worrying about.
29. A. I propose middle ground.
B. I feel that differences are not always worth worrying about.
30. A. I try not to hurt the other person's feelings.
B. I always share the problem with the other person so that we can work it out.
43
SCORING THE THOMAS-KILMANN CONFLICT MODE QUESTIONNAIRE
Competing Collaborating Compromising Avoiding Accommodating
(Forcing) (Problem Solving)
(Sharing) (Withdrawal) (Smoothing)
1. A B 2. B A 3. A B 4. A B 5. A B A 6. B A 7. B A 8. A B 9. B A 10. A B 11. A B 12. B A 13. B A 14. B A 15. B A 16. B A 17. A B 18. B A 19. A B 20. A B 21. B A 22. B A 23. A B 24. B A 25. A B 26. B A 27. A B 28. A B 29. A B 30. B A
Total the number of letters circled in each column. Competing Collaborating Compromising Avoiding Withdrawing
(Forcing) (Problem Solving)
(Sharing) (Withdrawal) (Smoothing)
_____ _____ _____ _____ _____
44
SUDDEN PREP NEGOTIATIONS If time is short, if the substance is of limited importance, and you need a little quick help getting ready
THINGS I SHOULD BE READY TO PUT “ON THE TABLE”
My Interests Options Legitimacy Their Interests What I really care about. My wants, needs, concerns, hopes, and fears
Possible agreements that we might reach
External standards or precedents that might convince one or both of us that a proposed agreement is fair
What I think they really care about. Their wants, concerns, hopes, and fears.
1. 1. 1. 1.
2. 2. 2. 2.
3. 3. 3. 3.
4. 4. 4. 4.
5. 5. 5. 5.
BATNA “My walk-away alternative.”
What can I do if I walk away without agreement? Which is the best? What would I really do?
1.
2.
3.
Commitment
If we reach agreement, we commit to some option
SELLER’S settlement range
ZOPA
BUYER’S settlement range
Buyer’s Walkaway Position
Seller’s Walkaway Position
45