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Determining Flexible Cash RentsUsing the “FlexRent”Spreadsheet

Kevin Dhuyvetter and, Terry Kastens (January, 2012)

Summary

Flexible cash rents can be based on numerous risk-related factors (e.g., prices, yields, weather, and government factors). The FlexRent spreadsheet considers three such factors: 1) crop prices, 2) crop yields, and 3) crop revenue (price x yield). With flexible cash rents, some desired level of risk sharing between the landowner and tenant can be obtained.