Transcript Poster - Successful Land Rent Negotiations are More than Bidding Highest

Successful Land Rent Negotiations are More than Bidding Highest
Dwight Aakre, Andy Swenson, Willie Huot
Objective
Educational Meetings
Nov 2012 – March 2013
Provide information to land
owners and operators that helps
them improve their abilities to
negotiate rental agreements that
meet the needs of both parties
in an environment of rapidly
raising land costs
North Dakota Counties
4
3.5
3
2.5
2
1.5
1
0.5
0
Introduction
Rising land costs in recent years
have made it increasingly for land
owners and operators to
negotiate rental leases that
satisfy all parties involved.
Inquiries from both owners and
operators for information on
alternative lease arrangements as
well as how to strengthen
relationships have increased
dramatically for NDSU Extension
staff throughout the state.
Methods
Specialists and field staff
worked together to plan,
promote and deliver twenty
two individual half day
workshops throughout the
state. Materials were
presented by power points,
turning point technologies,
handouts, showcasing web
sites, question & answer
periods.
Results
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22 workshop held
729 people attended
Approximately 45 % operators,
55% owners
Summary of Workshop Evaluation
3.71
3.48
3.26
2.57
3.47
3.24
3.39
2.64
2.59
2.48
2.44
2.09
I understand the I understand the I am confident I understand the
importance of a common types in selecting and elements to be
written land
of lease
drafting an
included in an
lease contract
agreements
agricultural
agricultural
lease
lease
Before
I know the key I have a desire
questions to
to create an
answer when
alternative
creating dan
leasing
agricultural
arrangement
lease
After
Topics Covered During Workshops
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Historical Land Prices
Factors Affecting Land Values
What is Land Worth?
Understanding Capitalization Rates
What is a fair Cash Rent Value?
Fixed Cash Rent Methods
Pros & Cons of Flexible Cash Rent Leases
Establishing Base Yields and Prices
Flexing for Price Only
Flexing for Yields Only
Flexing for Both Price & Yields
Important Questions to Ask
Improving Land Lord/Tenant
Relationships
 Use of resume’s and Newsletters
As a Result of Participating in this Program
350
300
250
200
150
100
50
0
I intend to initiate discussion with
landowners (or operators) about a
land lease
I have new ideas and tools to
develop better land lease
arrangements
Yes
No
I better understand how
relationships between land owners
and tenants may be improved