While we have worked with farmland and cropland sales and leasing before this opportunity provided multiple challenges due to the vast and varying types and locations of land.
So we decided to focus on our home area area and since we are licensed in Missouri and Kansas it seemed reasonable to act on those states only at this time.
Our primary concern was the liability exposure this client had with people trespassing on their properties for extended periods of time, and being tacitly allowed to stay. The first order of business is to identify, mark and post all of the property perimeters! That may require surveys, fencing and most importantly signage.
Secondly we must look at the contractual agreements with the users of their land. Contracts of leases must outline the following.
- Specific areas to be leased
- Duration and expiration
- Limitations and restrictions of land use
- Compensation to owner
- Requirements of Liability insurance and waiver of liability
- Remedies for failure to comply
- Right of entry and inspection
- Legal and environmental compliance requirements
- Maintenance and limitations of additions or changes to structures
- Mineral rights including solar, wind, water and others
- Items specific to that property
Missouri and Kansas as well as Iowa and several other states have a wealth of information available online that can be printed or even downloaded for your use. They also offer historical lease data organized in various ways. The University of Missouri Extension offers rental rates based on average yield per acre per crop as well as pasture rents based on a three tiered system of grading.
While K-State Research and Extension breaks it down more by region and whether the property is irrigated or not. Both of these fine organizations also offer classes, and a wealth of information that will be helpful in this process. Also take a look at AgManager.
I will attach some of that information below in PDF format.
Lease rates differ vastly depending on the type of property, location, productivity and soil type. Heavily timbered land is considerably less desirable to a cattle rancher or corn grower than large areas of open field. Tillable cropland will bring significantly more than rocky or uneven land that can support cattle or other livestock.
Other factors also weigh heavily into the value such as accessibility, access to water, overall size of the parcel and proximity to market.