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Flexible Cash Rental Arrangement

Mary Sobba and, Joe Parcell (October, 2001)

Summary

flexible cash rental arrangement is a hybrid between a cash and a crop-share rental agreement. It allows for some of the tenant's risk under a traditional cash rental arrangement to be shifted to the landowner. With increased risk there is a greater chance for higher profit. Therefore, over several years the landowner should receive a monetary return that is greater than would have been received in a cash rental agreement, but less than the landowner's share in a crop-share rental agreement.