so you’ve inherited a farm, now what a farm.pdf · unless you can prove otherwise, 100% of the...
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So You’ve Inherited a Farm, Now What?
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This material is based upon work supported by USDA-NIFA under Award Number 2015-49200-24226.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Alla
n Vy
hnal
ekF
arm
Suc
cess
ion
& T
rans
itio
n
Em
ail:
avy
hnal
ek@
unl.e
du
Pho
ne: (
402)
472
-177
1
So Y
ou’v
e In
heri
ted
a Fa
rm,
Now
Wha
t?
Jim
Jan
sen
Agr
icul
tura
l Eco
nom
ist
Em
ail:
jjan
sen4
@un
l.edu
Pho
ne: (
402)
261
-757
2
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
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
15-4
9200
-242
26.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Item
s to
be
disc
usse
d:•
Wha
t is
your
land
wor
th?
–A
look
at N
ebra
ska
land
val
ues
•H
ow d
o yo
u ap
prai
se y
our
land
, and
how
do
you
find
an
appr
aise
r?•
How
you
ow
n la
nd d
eter
min
es w
hat y
ou c
an d
o w
ith
it•
Com
mun
icat
ing
wit
h fa
mil
y an
d w
hat t
o do
whe
n th
ings
don
’t g
o a s
plan
ned
•W
hat t
o do
if y
ou c
hoos
e to
sel
l the
gro
und
•W
hat t
o do
if y
ou k
eep
the
grou
nd•
Cas
h re
nt, t
rend
s, a
nd s
etti
ng a
sta
rtin
g re
ntal
rat
e•
How
wil
l you
r fa
rm b
e m
anag
ed?
•W
ritt
en le
ase
prov
isio
ns y
ou s
houl
d co
nsid
er
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
WH
AT
IS
YO
UR
LA
ND
WO
RT
H?
1©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Dis
clai
mer
•Lan
d va
lues
and
ren
tal r
ates
sho
wn
and
disc
usse
d in
this
pre
sent
atio
nar
e ex
cerp
ts f
rom
the
UN
L N
ebra
ska
Far
m R
eal E
stat
e M
arke
t Sur
vey.
•Lan
d va
lues
and
ren
tal r
ates
pre
sent
ed in
this
pre
sent
atio
n ar
e av
erag
esfr
om th
ese
surv
eys.
Act
ual l
and
valu
es a
nd r
enta
l rat
es m
ay v
ary
depe
ndin
g up
on th
e qu
alit
y of
the
parc
el a
nd lo
cal m
arke
t for
an
area
.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Neb
rask
a 20
17 L
and
Mar
ket P
rese
ntat
ion
Ove
rvie
w
•Lan
d V
alue
s•
Ave
rage
Val
ues
and
Per
cent
Cha
nges
•Cas
h R
enta
l Rat
es•
Ave
rage
Val
ues
and
Qua
lity
Ran
ges
•Agr
icul
tura
l Far
mla
nd L
ease
s•
Lea
se A
rran
gem
ent T
rend
s•
Set
ting
Cas
h R
enta
l Rat
es
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Neb
rask
a F
arm
Rea
l Est
ate
Sur
vey
•Ann
ual s
urve
y co
nduc
ted
sinc
e 19
78 o
f N
ebra
ska
agri
cult
ural
appr
aise
rs, p
rofe
ssio
nal f
arm
man
ager
s, a
nd b
anke
rs e
ngag
ed in
the
land
indu
stry
.•
Pre
lim
inar
y re
sult
s fo
r la
nd v
alue
s an
d re
ntal
rat
es p
ubli
shed
the
seco
nd w
eek
of M
arch
.•
Ful
l rep
ort p
ubli
shed
the
foll
owin
g Ju
ne.
•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
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Neb
rask
a A
gric
ultu
ral
Sta
tist
ics
Dis
tric
ts
2©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Neb
rask
a L
and
Val
ues
Lan
d A
vera
ges
and
Ann
ual P
erce
nt C
hang
es
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Neb
rask
a A
gric
ultu
ral A
vera
ge
All
Lan
d V
alue
s –
Feb
. 1, 2
017
Nor
th$1
,170
/ac
-6%
Nor
thw
est
$755
/ac
-8%
Sout
hwes
t$1
,745
/ac
-11%
Cen
tral
$3,3
85/a
c-1
0%
Nor
thea
st$5
,505
/ac
-8% Ea
st$6
,395
/ac
-9%
Sout
heas
t$4
,880
/ac
-14%
Sout
h$3
,875
/ac
-9%
Stat
e$2
,820
/ac
-9%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
His
tori
cal N
ebra
ska
Ave
rage
Lan
d V
alue
& C
orn
Pri
ce
1978
-201
7
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Dry
land
Cro
plan
d (N
o Ir
riga
tion
Pot
enti
al)
Ave
rage
Val
ue –
Feb
. 1, 2
017
Nor
th$1
,560
/ac
-5%
Nor
thw
est
$715
/ac
-4%
Sout
hwes
t$1
,710
/ac
-13%
Cen
tral
$2,7
85/a
c-1
4%
Nor
thea
st$5
,410
/ac
-6% Ea
st$5
,790
/ac
-9%
Sout
heas
t$4
,285
/ac
-12%
Sout
h$3
,045
/ac
-15%
Stat
e$3
,145
/ac
-9%
3©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Dry
land
Cro
plan
d (I
rrig
atio
n P
oten
tial
) A
vera
ge V
alue
–F
eb. 1
, 201
7
Nor
th$2
,110
/ac
-2%
Nor
thw
est
$765
/ac
-3%
Sout
hwes
t$1
,720
/ac
-5%
Cen
tral
$3,2
20/a
c-1
6%
Nor
thea
st$5
,980
/ac
-11% Ea
st$6
,455
/ac
-10%
Sout
heas
t$5
,390
/ac
-16%
Sout
h$3
,750
/ac
-13%
Stat
e$4
,225
/ac
-12%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Gra
zing
Lan
d (T
illa
ble)
A
vera
ge V
alue
–F
eb. 1
, 201
7
Nor
th$1
,170
/ac
-12%
Nor
thw
est
$530
/ac
-6%
Sout
hwes
t$9
75/a
c-9
%
Cen
tral
$2,1
55/a
c-1
2%
Nor
thea
st$3
,665
/ac
-7% Ea
st$3
,765
/ac
-14%
Sout
heas
t$2
,780
/ac
-13%
Sout
h$2
,040
/ac
-9%
Stat
e$1
,335
/ac
-11%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Gra
zing
Lan
d (N
onti
llab
le)
Ave
rage
Val
ue –
Feb
. 1, 2
017
Nor
th$7
05/a
c-5
%N
orth
wes
t$4
65/a
c-3
%
Sout
hwes
t$8
20/a
c-1
0%
Cen
tral
$1,6
85/a
c-1
2%
Nor
thea
st$2
,230
/ac
-10% Ea
st$2
,495
/ac
-11%
Sout
heas
t$2
,005
/ac
-9%
Sout
h$1
,500
/ac
-11%
Stat
e$8
95/a
c-8
%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Hay
land
Ave
rage
Val
ue –
Feb
. 1, 2
017
Nor
th$1
,370
/ac
-6%
Nor
thw
est
$795
/ac
-11%
Sout
hwes
t$1
,485
/ac
-13%
Cen
tral
$2,1
70/a
c-1
6%
Nor
thea
st$3
,295
/ac
-4% Ea
st$3
,090
/ac
-3%
Sout
heas
t$2
,680
/ac
-4%
Sout
h$2
,160
/ac
-8%
Stat
e$1
,815
/ac
-8%
4©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Gra
vity
Irr
igat
ed C
ropl
and
Ave
rage
Val
ue –
Feb
. 1, 2
017
Nor
th$3
,835
/ac
-3%
Nor
thw
est
$2,5
80/a
c-1
3%
Sout
hwes
t$4
,155
/ac
-5%
Cen
tral
$6,1
95/a
c-6
%
Nor
thea
st$6
,890
/ac
-5% Ea
st$7
,640
/ac
-6%
Sout
heas
t$6
,615
/ac
-10%
Sout
h$6
,020
/ac
-4%
Stat
e$6
,070
/ac
-6%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cen
ter
Piv
ot I
rrig
ated
Cro
plan
dA
vera
ge V
alue
–F
eb. 1
, 201
7
Nor
th$4
,150
/ac
-5%
Nor
thw
est
$2,8
15/a
c-1
4%
Sout
hwes
t$4
,510
/ac
-15%
Cen
tral
$6,8
85/a
c-9
%
Nor
thea
st$7
,445
/ac
-6% Ea
st$8
,700
/ac
-8%
Sout
heas
t$7
,820
/ac
-15%
Sout
h$6
,700
/ac
-7%
Stat
e$6
,295
/ac
-9%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Rat
ing
of F
acto
rs In
fluen
cing
Agr
icul
tura
l Lan
d Va
lues
in 2
017
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
HO
W D
O Y
OU
AP
PR
AIS
E Y
OU
R L
AN
D?
5©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
App
rais
ing
land
•Wha
t is
an a
ppra
isal
?•
An
appr
aisa
l is
prof
essi
onal
app
rais
er’s
opi
nion
of
mar
ket v
alue
on
a pr
oper
tysu
ch a
s la
nd, b
uild
ings
, or
a fa
rm.
•Why
get
an
appr
aisa
l?•
To d
eter
min
e th
e cu
rren
t mar
ket v
alue
of
the
inhe
rite
d fa
rm a
nd u
nder
stan
dho
w lo
cal e
cono
mic
and
mar
ket f
orce
s in
flue
nce
real
est
ate
in a
n ar
ea.
•G
ain
pers
pect
ive
on th
e ty
pe o
f la
nd a
nd v
alue
ass
ocia
ted
wit
h di
ffer
ent
impr
ovem
ents
.•
Und
erst
and
the
valu
e as
soci
ated
wit
h im
prov
emen
ts s
uch
as b
arns
, mac
hine
shed
s, o
r ir
riga
tion
equ
ipm
ent m
ay b
e ph
ysic
ally
dep
reci
ated
or
func
tion
ally
obso
lete
.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
How
muc
h do
es a
n ap
prai
sals
cos
t?
•Wha
t fac
tors
infl
uenc
e th
e co
st o
f ap
prai
sal?
•A
vail
abil
ity
of c
erti
fied
gen
eral
agr
icul
tura
l app
rais
ers
serv
ing
a re
gion
.•
Siz
e an
d ge
ogra
phic
al lo
cati
on o
f la
nd.
•K
ind
of im
prov
emen
ts m
ade
to th
e fa
rm s
uch
as b
uild
ings
or
live
stoc
kfa
cili
ties
.
•Wha
t doe
s an
app
rais
al ty
pica
lly
cost
?•
An
80 to
160
acr
e pa
rcel
app
rais
al m
ay c
ost b
etw
een
$1,5
00 to
$2,
500
or m
ore
depe
ndin
g up
on n
umbe
r of
impr
ovem
ents
.•
Mid
-siz
ed r
anch
app
rais
als
can
cost
$5,
000
or m
ore
depe
ndin
g up
on th
eco
nfig
urat
ion
of th
e gr
ound
(gr
azin
g pa
ddoc
ks, l
ives
tock
wat
erin
g sy
stem
s, o
rli
vest
ock
wor
king
fac
ilit
ies)
.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
How
to f
ind
an a
ppra
iser
•A
ppra
iser
s ar
e li
cens
ed to
pre
form
app
rais
als
in N
ebra
ska.
•P
ubli
c li
stin
g of
app
rais
ers
can
be f
ound
at:
ht
tp:/
/ww
w.a
ppra
iser
.ne.
gov/
•S
elec
t App
rais
er L
isti
ng o
n th
e w
ebsi
te a
nd th
en c
lick
App
rais
er
Lis
ting
/Neb
rask
a C
ount
y M
ap to
dis
play
inte
ract
ive
map
to lo
cate
an
appr
aisa
l pro
fess
iona
l.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
How
to f
ind
an a
ppra
iser
or
land
pro
fess
iona
l•
The
Am
eric
an S
ocie
ty o
f F
arm
Man
ager
s an
d R
ural
App
rais
ers
(AS
FMA
) is
an
asso
ciat
ion
of
prof
essi
onal
s sp
ecia
lizi
ng in
far
m &
ran
ch m
anag
emen
t and
land
app
rais
als.
•M
embe
rs c
an b
e fo
und
at h
ttp:
//w
ww
.asf
mra
.org
/•
Sel
ect F
ind
a L
and
Exp
ert o
n th
e w
ebsi
te to
dis
play
a s
earc
habl
e da
taba
se o
f m
embe
rs .
6©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Qua
liti
es o
f a
prof
essi
onal
agr
icul
tura
l app
rais
er
•To
pref
orm
an
agri
cult
ural
land
app
rais
al th
eap
prai
ser
need
s to
be
lice
nsed
in N
ebra
ska:
•A
cer
tifi
ed g
ener
al a
ppra
iser
lice
nse
is r
equi
red
topr
efor
m la
nd a
nd f
arm
app
rais
als.
•D
efin
e ou
t the
sco
pe o
f w
ork
(leg
al d
escr
ipti
on o
f th
epr
oper
ty, n
umbe
r of
acr
es, t
ypes
of
impr
ovem
ents
) pr
ior
to c
onta
ctin
g a
prof
essi
onal
.•
Vis
it w
ith
seve
ral a
ppra
iser
s to
get
a f
eel o
n hi
s or
her
prof
essi
onal
com
pete
ncy
in p
refo
rmin
g an
agr
icul
tura
lap
prai
sal,
cost
of
serv
ice,
and
geo
grap
hica
l kno
wle
dge.
•S
eek
out r
ecom
men
dati
ons
from
pri
or c
lien
ts o
r in
dust
rypr
ofes
sion
als.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
HO
W I
S Y
OU
R L
AN
D O
WN
ED
?
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Type
s of
Ow
ners
hip
•Fee
Sim
ple
•Mul
tipl
e O
wne
rs
•Jo
int T
enan
cy•
Tena
ncy
in C
omm
on
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Fee
Sim
ple
Ow
ners
hip
•One
ow
ner
–on
e na
me
on th
e ti
tle
•T
his
nam
e ca
n al
so b
e a
lim
ited
liab
ilit
y en
tity
, par
tner
ship
, cor
pora
tion
, or
trus
t
•W
hile
the
LL
E m
ight
hav
e se
vera
l mem
bers
, the
ent
ity
as a
n in
divi
dual
ow
nsth
e la
nd
7©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Join
t Ten
ancy
•Joi
nt te
nanc
y –
sepa
rate
titl
ing
•“R
ight
s of
Sur
vivo
rshi
p” S
urvi
vor
take
s it
all
–in
tere
st p
asse
s to
oth
er o
wne
rsof
pro
pert
y•
No
prob
ate
is n
eede
d•
Hav
e im
med
iate
acc
ess
upon
dea
th•
How
do
you
know
?•
Tit
le m
ust s
ay jo
int t
enan
cy w
ith
RO
S, o
ther
wis
e it
def
ault
s to
TIC
•Jo
int t
enan
cy a
ssum
es e
qual
ow
ners
hip
•F
or e
xam
ple,
join
t ten
ants
can
not o
wn
70%
and
30%
res
pect
ivel
y, th
ey e
ach
own
50%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Wha
t doe
s it
Mea
n -
JT?
•You
and
you
r si
ster
ow
n a
100-
page
boo
k; e
ach
of y
ou o
wns
100
% o
fth
e bo
ok…
is th
at p
ossi
ble?
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Pit
fall
s in
JT
•If
you
list
a jo
int t
enan
t and
you
pas
s aw
ay•
100%
ow
ners
hip
goes
to th
e JT
, but
…•
Onl
y 50
% o
f th
e pr
oper
ty g
ets
a st
ep u
p in
bas
is b
ecau
se y
ou o
nly
had
50%
actu
al o
wne
rshi
p•
Unl
ess
you
can
prov
e ot
herw
ise,
100
% o
f th
e va
lue
of th
e pr
oper
ty is
incl
uded
in th
e va
luat
ion
of y
our
esta
te
•JT
w/ R
OS
has
som
e di
sadv
anta
ges…
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Exa
mpl
e•Y
ou a
nd a
sis
ter
purc
hase
land
wor
th $
100k
•You
and
you
r si
ster
are
bot
h li
sted
on
the
titl
e as
join
tte
nant
w/R
OS
•You
die
…th
e la
nd h
as a
ppre
ciat
ed to
$12
0K
•You
r si
ster
get
s 10
0% o
wne
rshi
p of
the
cabi
n, a
nd$1
20K
is a
dded
to th
e va
lue
of y
our
esta
te u
nles
s yo
ures
tate
can
pro
ve th
at s
iste
r pa
id f
or 5
0%
8©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Exa
mpl
e
•You
r si
ster
dec
ides
to s
ell t
he la
nd
•She
doe
s no
t pay
cap
ital
gai
ns o
n th
e st
ep-u
p po
rtio
n of
the
half
pas
sed
by y
ou
•She
doe
s pa
y ca
pita
l gai
ns o
n th
e ha
lf s
he o
wne
d at
cos
t or
$50K
•The
new
bas
is is
$60
K S
U +
$50
K in
vest
men
t
•Whe
n so
ld: $
120K
-$1
10K
= $
10,0
00 c
apit
al g
ains
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Tena
ncy
in C
omm
on
•Ten
ancy
in c
omm
on –
spou
ses,
fam
ily
mem
bers
•M
ay h
ave
issu
es w
ith
cred
itor
cla
ims
•U
pon
deat
h, in
tere
stpa
sses
to o
wne
r’s
heir
s•
Hav
e di
stin
ct a
nd s
epar
ate
inte
rest
•R
ight
of
poss
essi
on is
und
ivid
ed•
Abs
olut
e ri
ght o
f pa
rtit
ion
for
sale
•S
epar
ate
inte
rest
mea
ns y
ou c
ould
hav
e 40
% in
tere
st, a
noth
er s
iste
r ha
s 30
%an
d a
brot
her
has
30%
•If
you
pay
50%
of
the
expe
nses
, and
the
land
sel
ls, y
ou c
ould
rece
ive
50%
of
the
sale
eve
n th
ough
you
onl
y ha
d 40
% in
tere
st
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Pro
blem
s w
ith
TIC
•You
or
othe
rs c
an s
ell y
our
inte
rest
in th
e la
nd to
ano
ther
par
ty w
hich
may
cau
se u
nint
ende
d pa
rtne
rs
•You
r in
tere
st o
r an
othe
r’s
coul
d be
gar
nere
d by
cre
dito
rs a
s pa
ymen
t•
Pre
tty
rare
, the
y do
n’t w
ant p
artn
ers
in la
nd e
ithe
r
•If
you
get d
ivor
ced,
you
r sp
ouse
can
take
50%
of
your
inte
rest
•If
a sp
ouse
rem
arri
es, t
heir
new
par
tner
has
a c
laim
aga
inst
the
50%
you
just
lost
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Tena
ncy
in C
omm
on
•You
and
you
r si
ster
ow
n a
100-
page
boo
k, te
nanc
y in
com
mon
•Eac
h of
you
act
uall
y ow
n 50
% o
f th
e bo
ok o
r 50
page
s…in
depe
nden
tly…
the
ques
tion
is, w
hich
50
page
s?
9©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Acc
ount
s an
d G
ifts
•If
you
own
land
wor
th $
150K
, and
you
dec
ide
to p
ut y
our
sist
er’s
nam
e on
the
titl
e…
•You
wil
l hav
e ge
nera
ted
a $7
5K g
ift…
•If
you
list
ano
ther
on
a ba
nk a
ccou
nt…
•T
here
is n
o gi
ft m
ade,
unt
il th
e ot
her
part
y tr
ies
to w
ithd
raw
fun
ds•
As
long
as
it’s
und
er th
e an
nual
gif
t exc
lusi
on, n
o pr
oble
ms
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Join
t or
Com
mon
Ten
ancy
…w
hich
is b
est?
•Dep
ends
on
your
obj
ecti
ves
•Ten
ancy
in c
omm
on m
ay e
xist
in a
ny p
ropo
rtio
n
•Joi
nt te
nanc
y m
ust h
ave
equa
l sha
res
•Wha
t hap
pens
if o
ne p
arty
get
s in
to tr
oubl
e?•
Cre
dito
rs c
an m
ove
agai
nst o
wne
rshi
p
•If
one
part
y pa
sses
, wha
t hap
pens
to th
e pr
oper
ty?
•Y
ou c
ould
ow
n in
tere
st in
pro
pert
y w
ith
peop
le y
ou d
on’t
like
…
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Oth
er T
itle
s•
Lif
e es
tate
and
rem
aind
er•
Pas
s ow
ners
hip
futu
re in
tere
st o
f pr
oper
ty to
ano
ther
•H
old
onto
rig
hts
to r
ents
and
pro
fits
, pos
sess
ion,
and
cos
t of
mai
nten
ance
.•
Can
not s
ell o
r w
aste
the
prop
erty
•N
o re
quir
emen
t for
pro
bate
•T
rigg
ers
a gi
ft ta
x st
atem
ent
•T
rans
fers
at c
ost b
asis
wit
h no
ste
p-up
; tax
pro
blem
s?
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Lif
e E
stat
e•
Is th
e tr
ansf
er o
f in
tere
st f
rom
one
par
ty to
ano
ther
…•
… to
A, f
or li
fe, t
hen
to B
•R
emai
nder
man
–so
meo
ne th
at h
as fu
ture
inte
rest
in p
rope
rty,
but
not
pre
sent
in
tere
st•
No
pow
er to
cha
nge,
sel
l, gi
ft, o
r ot
her
acti
ons
typi
cal o
f fe
e si
mpl
e ow
ners
hip
•L
ife
tena
nt c
an:
•U
se•
Gro
w c
rops
•G
arne
r pr
ofit
s•
Eve
n se
ll…
wit
h se
vere
lim
itat
ions
to th
e bu
yer…
•C
anno
t was
te th
e pr
oper
ty
10©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Lif
e E
stat
e
•Was
te –
any
acti
on th
at w
ould
adv
erse
ly a
ffec
t the
nat
ure
or q
uali
ty o
fth
e re
mai
nder
man
’sfu
ture
inte
rest
in th
e pr
oper
ty•
Des
troy
fie
lds
•F
ail t
o m
aint
ain
stru
ctur
es•
Fai
l to
pay
taxe
s le
adin
g to
sei
zure
•The
rem
aind
erm
anca
n br
ing
suit
aga
inst
the
life
tena
nt f
or s
peci
fic
was
te a
ctio
ns, b
ut n
ot g
ener
al o
r no
n-sp
ecif
ic d
imin
utio
n of
the
prop
erty
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Lif
e E
stat
e
•Can
use
to b
ypas
s ge
nera
tion
s. C
onsi
der…
•Pau
l and
Mar
y ar
e si
blin
gs.
Pau
l dec
ides
to g
ive
life
est
ate
to M
ary
for
his
hous
e, a
nd u
pon
Mar
y’s
deat
h, th
e pr
oper
ty g
oes
to P
aul’s
chil
dren
•P
aul’
s ki
ds a
re th
e re
mai
nder
men
•M
ary
has
life
est
ate
•K
now
n as
pur
autr
evi
e
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Lif
e E
stat
e
•May
not
ful
ly p
rote
ct r
eal e
stat
e fr
om n
ursi
ng h
ome
cost
s•
How
long
fro
m li
fe e
stat
e to
Med
icai
d?
•If
rem
aind
erm
andi
es, f
ee in
tere
st m
ust g
o th
roug
hth
eir
esta
te
•Wha
t abo
ut d
ivor
ce?
•Wha
t if
prop
erty
is to
be
sold
?
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Why
is th
is I
mpo
rtan
t?•H
ow y
ou o
wn
land
dic
tate
s w
hat y
ou c
an d
o w
ith
it•
You
inhe
rit l
and
TIC
wit
h fa
mil
y an
d th
ey w
ant t
o se
llth
eir
inte
rest
, wha
t can
you
do?
•B
uy th
eir
inte
rest
•F
orce
par
titi
on•
Rol
l the
dic
e an
d ho
pe f
or th
e be
st•
TIC
and
JT
dec
isio
ns•
Who
dec
ides
on
wha
t hap
pens
to th
e gr
ound
?•
Wha
t if
one
part
ner
choo
ses
not t
o pa
y th
eir
port
ion
of ta
xes?
•W
hat i
f on
e si
blin
g ge
ts in
to s
erio
us le
gal t
roub
le?
•W
hat i
f on
e si
blin
g is
als
o fa
rmin
g th
e gr
ound
?
•Rec
all t
hat w
hen
you
inhe
rit g
roun
d, y
ou a
lso
get a
llli
ens
agai
nst i
t as
wel
l
11©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Oth
er T
ypes
of
Str
uctu
res
•Lan
d ca
n be
“ow
ned”
in•
Tru
sts
•L
imit
ed li
abil
ity
enti
ties
•F
amil
y li
mit
ed p
artn
ersh
ips
•L
imit
ed p
artn
ersh
ip•
Gen
eral
par
tner
ship
•C
orpo
rati
ons
•A
ny p
orti
on o
f th
e ab
ove
•50
% to
an
indi
vidu
al•
20%
to a
Cha
rita
ble
rem
aind
er tr
ust
•30
% to
a li
mit
ed li
abil
ity
farm
ing
enti
ty
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Wil
ls a
nd T
rust
s
•The
wil
l and
or
trus
t may
dic
tate
how
you
get
to m
anag
e th
e la
nd
•…or
whe
n yo
u ev
en g
et th
e la
nd
•…w
ho th
e tr
uste
e is
•…ho
w y
ou o
r ot
hers
may
dis
pose
of
inte
rest
•…w
ho o
r w
hen
you
can
sell
•…w
ho y
ou c
an r
ent t
o an
d at
wha
t ter
ms
•…be
ing
in a
trus
t and
man
agin
g la
nd c
an b
e ve
ry c
ompl
icat
ed
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Dur
able
and
Hea
lth
Car
e P
ower
s of
Att
orne
y
•G
rant
of
pow
er to
ano
ther
to lo
ok a
fter
ass
ets
and
man
age
affa
irs,
mak
e he
alth
car
e de
cisi
ons
•A
ntic
ipat
es p
ossi
bili
ty o
f in
com
pete
nce:
avo
ids
need
for
com
pete
ncy
hear
ing
or a
ppro
val o
f gu
ardi
an
•S
tatu
te d
efin
es p
ower
s (p
lena
ry –
com
plet
e, u
nqua
lifi
ed)
•S
houl
d al
so in
clud
e ex
pres
s po
wer
s fo
r ta
x re
turn
s, li
fe in
sura
nce
mat
ters
, mak
ing
gift
s,
tran
sfer
ring
pro
pert
y in
to tr
ust,
acce
ssin
g sa
fe d
epos
it b
ox, d
eali
ng w
ith
reti
rem
ent p
lans
and
S
ocia
l Sec
urit
y
•M
ay b
e co
ntin
gent
or p
rese
nt•
Con
ting
ent –
effe
ctiv
e on
ly u
pon
inco
mpe
tenc
e•
Pre
sent
–ef
fect
ive
whe
n ex
ecut
ed a
nd c
onti
nues
in s
pite
of
inco
mpe
tenc
e
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Pow
ers
of A
ppoi
ntm
ent
•U
sefu
l too
l for
pos
tpon
ing
deci
sion
as
to u
ltim
ate
disp
ositi
on o
f an
ass
et; a
llow
s po
st-m
orte
m
mod
ific
atio
n of
pla
n•
Cir
cum
stan
ces
may
cha
nge
•U
nfor
esee
n ev
ents
occ
ur•
Pow
er o
f App
oint
men
t sur
vive
s de
ath,
unl
ike
pow
er o
f at
torn
ey
•U
sed
in tr
usts
and
wil
ls
•E
xam
ple:
Ted
giv
es f
arm
to K
athy
, his
wif
e, f
or h
er li
feti
me,
wit
h th
e po
wer
to d
irec
t in
her
wil
l ho
w th
e fa
rm s
houl
d be
div
ided
am
ong
thei
r ch
ildr
en a
fter
her
dea
th•
E.x
. The
y w
ant i
t to
go to
the
“far
min
g” c
hild
, but
do
not y
et k
now
who
that
is
12©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Pow
ers
of A
ppoi
ntm
ent I
I•D
iffe
rent
kin
ds o
f P
ower
s of
App
oint
men
t•
Gen
eral
Pow
er –
Kat
hy h
as p
ower
to a
ppoi
nt a
nyon
e, in
clud
ing
hers
elf
•S
peci
al P
ower
of A
ppoi
ntm
ent -
Kat
hy c
an a
ppoi
nt o
ne o
r m
ore
of th
eir
chil
dren
•Te
stam
enta
ry P
ower
–K
athy
can
app
oint
onl
y in
her
wil
l•
Col
late
ral P
ower
–Te
d gi
ves
farm
to K
athy
for
life
and
pow
er to
app
oint
to th
eir
son
John
•Tax
atio
n of
Pow
ers
of A
ppoi
ntm
ent c
an b
e co
mpl
icat
ed•
Gen
eral
pow
ers
usua
lly
incl
uded
in ta
xabl
e es
tate
of
reci
pien
t of
pow
er (
Kat
hy);
som
e ex
cept
ions
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Tho
ught
s on
Pow
er o
f Att
orne
y
•As
the
hold
er o
f P
ower
of A
ttor
ney
or A
ppoi
ntm
ent,
you
have
a h
uge
resp
onsi
bili
ty to
man
age
and
mai
ntai
n th
e pr
oper
ty
•In
man
y ca
ses,
wil
ls, t
rust
s, a
nd P
OA
’s d
on’t
pro
vide
you
wit
h sa
lary
,an
d m
anag
emen
t can
take
con
side
rabl
e ti
me
and
effo
rt
•You
may
be
unde
r th
e m
icro
scop
e re
gard
ing
your
act
ions
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Com
mun
icat
ions
, fam
ily
rela
tion
ship
s, a
nd
havi
ng a
pla
n fo
r th
e la
nd
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cho
ices
, Cho
ices
, Cho
ices
•Sel
l!
•Kee
p in
fam
ily?
•K
eep
and
farm
it?
•K
eep
and
rent
it?
•U
se la
nd m
anag
er?
•The
par
ties
invo
lved
nee
d to
agr
ee o
n th
at f
utur
e
13©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Com
mun
icat
ion
-Im
port
ant
•Whe
n do
ne w
ith
the
proc
ess
–ar
e yo
u st
ill g
oing
to h
ave
a fa
mil
y?
•Mos
t peo
ples
’ goa
l is
to h
old
the
fam
ily
toge
ther
(?)
•D
on’t
mak
e th
at a
ssum
ptio
n –
get t
hat c
omm
itm
ent
•Bes
t way
is to
be
open
and
cle
ar w
ith
com
mun
icat
ions
•Who
par
tici
pate
s in
that
dis
cuss
ion?
•Put
all
opt
ions
on
the
tabl
e
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Com
mun
icat
ion
-co
ntin
ued
Con
side
r us
ing
som
e so
rt o
f fa
mil
y m
eeti
ng p
roce
ss
•Sch
edul
e m
eeti
ng –
not a
t maj
or H
olid
ay (
if p
ossi
ble)
•N
ot a
t Gra
ndm
a’s
kitc
hen
tabl
e (f
amil
y di
nner
s)
•Wil
l pro
babl
y ta
ke m
ore
than
one
mee
ting
•Tak
e no
tes,
rec
ord
the
conv
ersa
tion
•Be
sure
to in
clud
e of
f fa
rm f
amil
y
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Com
mun
icat
ion
-co
ntin
ued
Be
awar
e of
the
swee
thea
rt d
eals
•Sur
pris
es c
ause
pro
blem
s (s
tory
abo
ut G
rand
ma
and
pivo
t, or
on-
farm
bro
ther
)
•Get
bot
h si
des
of e
very
sto
ry!
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Com
mun
icat
ion
-co
ntin
ued
•Lis
teni
ng is
the
Key
!
•(P
ract
ice)
Mak
e pa
rtne
r re
peat
wha
t the
y th
ough
t you
sai
d –
tobe
sur
e th
at th
ey h
eard
you
, or
that
you
sai
d w
hat y
ou w
ante
din
tend
ed
•Mak
e su
re th
at y
ou u
nder
stan
d th
e ot
her
pers
on’s
poi
nt o
f vi
ew(s
eek
firs
t to
unde
rsta
nd, t
hen
to b
e un
ders
tood
)
•Spe
nd p
lent
y of
tim
e es
tabl
ishi
ng th
e ‘g
oal’
or v
isio
n•
Sugg
este
d up
to 8
0% o
f the
tim
e w
ith
the
visi
on –
or w
hat t
his
wil
l loo
k li
ke•
Env
isio
n th
e F
utur
e! (
Mar
k an
d N
ancy
sto
ry)
14©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Com
mun
icat
ion
1.A
llow
all
to h
ave
inpu
t*
Kno
w th
at th
ere
wil
l be
diff
eren
t exp
ecta
tion
s ba
sed
on p
erso
nali
ty, a
ge a
ndpa
rtic
ipat
ion
2.T
hen
foll
ow G
olde
n R
ule
–‘y
e w
ho h
as th
e go
ld m
akes
the
rule
’
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Gen
erat
iona
l Val
ues
Und
erst
andi
ng g
ener
atio
ns
Wha
t are
eac
h ge
nera
tion
’s d
efin
ing
char
acte
rist
ics?
Bas
ed o
n ex
peri
ence
s du
ring
thei
r fo
rmat
ive
year
s.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Com
mun
icat
ions
, Gen
erat
ions
, and
Rel
atio
ns
•The
livi
ng g
ener
atio
ns:
•M
atur
es: b
orn
1910
-194
5•
Bab
y bo
omer
s: b
orn
1946
-196
4•
Gen
erat
ion
X: b
orn
1965
-197
9•
Mil
lenn
ials
–(G
ener
atio
n Y
): b
orn
1980
-200
0•
Gen
erat
ion
Z: b
orn
2001
-???
•N
ot in
clud
ing
in to
day’
s di
scus
sion
•F
orm
ativ
e ye
ars
just
goi
ng to
sta
rt
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
15©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Whe
re a
re th
e va
lues
?
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Far
min
g H
eir
•Is
that
on-
farm
sib
ling
bei
ng tr
eate
d fa
irly
?•
Hav
e th
ey b
een
fair
ly tr
eate
d fo
r th
e sw
eat e
quit
y th
atth
ey h
ave
cont
ribu
ted
•H
ones
t eva
luat
ion
of th
is is
key
•A
void
fee
ling
s of
ent
itle
men
t•
Avo
id m
istr
ust
•Kno
w th
at p
erce
ptio
n of
inpu
t is
diff
eren
t•
For
off
-far
m s
ibbl
ing
•F
or o
n-fa
rm s
ibbl
ing
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Mor
e on
the
Sit
uati
on…
..F
air
is n
ot a
lway
s eq
ual
Typi
call
y, o
lder
gen
erat
ion
thin
ks th
at f
air
mea
ns e
qual
•Not
nec
essa
rily
true
•App
ropr
iate
for
on-
farm
hei
r to
rec
eive
com
pens
atio
n fo
r
swea
t equ
ity
–(b
uild
ing
mai
nten
ance
, non
-cro
p w
eed
cont
rol,
volu
ntee
r tr
ee c
ontr
ol, f
ence
mai
nten
ance
, ter
race
mai
nten
ance
, roc
k on
driv
eway
, etc
.)•
Thu
s th
e ne
ed to
be
fair
•A
lso
mea
ns th
at y
ou m
ay n
ot d
ivid
e as
set e
qual
ly
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Fai
r vs
. Equ
al
•Ove
r th
e ye
ars,
Mom
and
Dad
(ge
nera
tion
al v
alue
)ha
ve te
nded
to m
ake
the
pie
slic
es e
qual
, bu
t is
that
fair
?•
In s
ome
case
s –
yes
•E
ach
situ
atio
n is
dif
fere
nt –
no o
ne s
olut
ion
to th
isdi
scus
sion
16©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Con
trib
utio
n =
Com
pens
atio
n
•Fou
r C
hild
ren
•One
far
m
•Ins
tead
of
divi
ding
equ
ally
, @ 2
5% e
ach
cons
ider
•Div
idin
g by
5 o
r 20
% e
ach
•F
arm
sib
ling
rec
eive
s fi
fth
shar
e fo
r th
eir
cont
ribu
tion
–ac
tual
ly r
ecei
ves
40%
•Oth
ers
rece
ive
20%
inst
ead
of 2
5%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Is th
e fa
mil
y pl
an in
pla
ce?
•Do
you
all a
gree
?
•Is
it O
K to
hav
e a
maj
orit
y vo
te, o
r a
unan
imou
s vo
te?
•Rem
embe
r on
e of
my
firs
t sta
tem
ents
–do
we
wan
t the
fam
ily
toge
ther
whe
n th
is p
roce
ss is
fin
ishe
d?
•Whe
n do
you
get
hel
p?•
Wha
t can
that
hel
p lo
ok li
ke
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Hel
p w
ith
the
fam
ily
plan
s (w
hen
we
don’
t agr
ee)
•Cle
rgy
•Tru
sted
fam
ily
frie
nd
•Oth
er a
g pr
ofes
sion
al in
com
mun
ity–
like
a b
anke
r
•Fam
ily
Law
yer
•Med
iati
on/A
rbit
rati
on (
see
next
sli
de)
•Law
suit
(s)
–co
urt w
ill d
ecid
e
Lis
t fro
m le
ss e
xpen
sive
to m
ost e
xpen
sive
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Get
hel
p w
hen
need
ed:
Med
iatio
n/ar
bitr
atio
n, o
r m
ed/a
rb, i
s a
proc
ess
by
whi
ch th
e pa
rtie
s tr
y to
med
iate
thei
r di
sput
e w
ith
a ne
utra
l per
son,
the
med
iato
r. I
f th
ey c
anno
t agr
ee o
n a
reso
luti
on, t
hen
the
med
iato
rbec
omes
an
arbi
trat
or.
17©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Mor
e on
arb
itra
tion
…
•Is
arbi
trat
ion
deci
sion
fin
al?
•In
bin
ding
arb
itrat
ion,
the
arbi
trat
or's
deci
sion
is f
inal
. It m
ay n
ot b
ere
view
ed o
r ov
ertu
rned
by
a co
urt e
xcep
t in
very
lim
ited
cir
cum
stan
ces,
suc
has
whe
n fr
aud
or m
isus
e of
pow
er h
as b
een
invo
lved
. In
nonb
indi
ngar
bitr
atio
n, e
ithe
r pa
rty
may
rej
ect t
he a
rbitr
atio
naw
ard
and
dem
and
a tr
ial
inst
ead.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Get
and
use
hel
p w
hen
need
ed
•Rur
al r
espo
nse
Hot
line
–fo
r tr
ansi
tion
/tra
nsfe
rqu
esti
ons-
1-80
0-46
4-02
58•
Mak
e ap
poin
tmen
t for
loca
l cli
nic
(exa
mpl
e: N
orfo
lk/m
onth
ly)
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
IF Y
OU
SE
LL
TH
E G
RO
UN
D
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
You
r R
ight
s as
a L
ando
wne
r
•If
you
are
fee
sim
ple
–yo
u ca
n di
spos
e of
the
land
any
way
you
wis
h
•If
you
are
a jo
int t
enan
t, m
ust h
ave
perm
issi
on o
f al
l to
disp
ose
of th
eas
set
•If
you
are
tena
nt in
com
mon
, you
can
for
ce p
arti
tion
or
sell
off
you
rin
tere
st
•Rem
embe
r ho
w y
ou o
wn
the
land
mak
es a
hug
e di
ffer
ence
on
wha
tyo
u ca
n do
wit
h it
18©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Tax
Impl
icat
ions
of
Gif
ts a
nd S
ales
•If
you
rece
ived
the
land
as
a gi
ft…
•U
pon
sale
, you
wil
l be
resp
onsi
ble
for
capi
tal g
ains
tax
usin
g th
e or
igin
alpu
rcha
se p
rice
•If
you
gif
t the
land
to a
noth
er it
is o
nly
wor
th o
rigi
nal b
asis
, but
wil
l be
cons
ider
ed a
t mar
ket f
or y
our
life
tim
e ex
clus
ion
(may
req
uire
fil
ing
an I
RS
Gif
t For
m)
•If
you
rece
ived
thro
ugh
the
esta
te f
unne
l•
Upo
n sa
le, y
ou w
ill b
e re
spon
sibl
e fo
r th
e ca
pita
l gai
ns ta
x on
the
step
-up
(or
dow
n) v
alue
•If
you
gif
t the
land
to a
noth
er it
is w
orth
new
bas
is, a
nd w
ill b
e co
nsid
ered
at
mar
ket f
or y
our
life
tim
e ex
clus
ion
(may
req
uire
fil
ing
an I
RS
Gif
t For
m)
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
You
r O
ptio
ns U
nder
103
1
•Bas
ical
ly –
IRS
all
ows
you
to s
ell a
pro
pert
y an
d re
inve
st th
e pr
ocee
dsin
a n
ew p
rope
rty
all w
hile
def
erri
ng c
apit
al g
ains
tax
•G
ener
ally
hav
e 18
0 da
ys to
com
plet
e th
e ex
chan
ge•
Mus
t hav
e 10
0% p
rese
rvat
ion
of th
e eq
uity
for
ful
l def
erra
l and
mus
t hav
e a
like
-kin
d re
plac
emen
t•
Can
’t s
ell f
arm
land
and
buy
a b
oat –
not s
imila
r en
ough
•C
an s
ell f
arm
land
and
buy
uni
mpr
oved
pro
pert
y in
ano
ther
sta
te o
r im
prov
ed p
rope
rty
as
an in
vest
men
t•
See
you
r ta
x an
d le
gal c
ouns
el w
hen
cons
ider
ing
wha
t doe
s an
d do
es n
ot q
uali
ty f
or th
ese
exch
ange
s
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cho
osin
g to
Kee
p th
e F
arm
in th
e F
amil
y
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Neb
rask
a C
ash
Ren
tal R
ates
Dry
land
Cro
plan
dR
enta
l Rat
es
19©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Dry
land
Cro
plan
dA
vera
ge R
enta
l Rat
es –
2017
Sea
son
(Neb
rask
a F
arm
Rea
l Est
ate
Sur
vey)
Nor
th$5
5/ac
-8%
Nor
thw
est
$29/
ac-9
%
Sout
hwes
t$3
9/ac
-7%
Cen
tral
$88/
ac-8
%
Nor
thea
st$2
15/a
c-4
% East
$195
/ac
-3%
Sout
heas
t$1
55/a
c-6
%
Sout
h$7
2/ac
-10%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Dry
land
Cro
plan
d R
enta
l Rat
e R
ange
s –
2017
Sea
son
(Neb
rask
a F
arm
Rea
l Est
ate
Sur
vey)
Nor
thH
: $67
/ac
A: $
55/a
cL:
$41
/ac
Nor
thw
est
H: $
41/a
cA
: $29
/ac
L: $
23/a
c
Sout
hwes
tH
: $56
/ac
A: $
39/a
cL:
$28
/ac
Cen
tral
H: $
120/
acA
: $88
/ac
L: $
68/a
c
Nor
thea
stH
: $26
5/ac
A: $
215/
acL:
$17
0/ac Ea
stH
: $23
5/ac
A: $
195/
acL:
$15
5/ac
By
Reg
ion
Hig
h G
rade
(H)
Aver
age (
A)
Low
Gra
de (L
)So
uth
H: $
115/
acA
: $72
/ac
L: $
56/a
c
Sout
heas
tH
: $20
0/ac
A: $
155/
acL:
$13
0/ac
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Dry
land
Cro
plan
d R
enta
l Rat
es –
2017
Sea
son
(US
DA
-NA
SS
Sur
vey
–S
ept.
8, 2
017)
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Neb
rask
a C
ash
Ren
tal R
ates
Irri
gate
d C
ropl
and
Ren
tal R
ates
20©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Gra
vity
Irr
igat
ed C
ropl
and
Ave
rage
Ren
tal R
ates
–20
17 S
easo
n(N
ebra
ska
Far
m R
eal E
stat
e S
urve
y)
Nor
th$1
65/a
c-6
%N
orth
wes
t$1
20/a
c-4
%
Sout
hwes
t$1
70/a
c-6
%
Cen
tral
$220
/ac
-4%
Nor
thea
st$2
55/a
c-7
% East
$260
/ac
-9%
Sout
heas
t$2
35/a
c-6
%
Sout
h$2
05/a
c-5
%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Gra
vity
Irr
igat
ed C
ropl
and
Ren
tal R
ate
Ran
ges
–20
17 S
easo
n(N
ebra
ska
Far
m R
eal E
stat
e S
urve
y)
Nor
thH
: $19
0/ac
A: $
165/
acL:
$14
0/ac
Nor
thw
est
H: $
150/
acA
: $12
0/ac
L: $
95/a
c
Sout
hwes
tH
: $23
5/ac
A: $
180/
acL:
$13
5/ac
Cen
tral
H: $
255/
acA
: $22
0/ac
L: $
185/
ac
Nor
thea
stH
: $29
5/ac
A: $
255/
acL:
$21
0/ac Ea
stH
: $30
0/ac
A: $
260/
acL:
$23
5/ac
By
Reg
ion
Hig
h G
rade
(H)
Aver
age (
A)
Low
Gra
de (L
)So
uth
H: $
250/
acA
: $20
5/ac
L: $
170/
ac
Sout
heas
tH
: $27
5/ac
A: $
235/
acL:
$20
5/ac
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cen
ter
Piv
ot I
rrig
ated
Cro
plan
dA
vera
ge R
enta
l Rat
es –
2017
Sea
son
(Neb
rask
a F
arm
Rea
l Est
ate
Sur
vey)
Nor
th$2
05/a
c-7
%N
orth
wes
t$1
55/a
c-9
%
Sout
hwes
t$2
00/a
c-1
1%
Cen
tral
$230
/ac
-4%
Nor
thea
st$3
05/a
c-1
2% East
$290
/ac
-9%
Sout
heas
t$2
65/a
c-9
%
Sout
h$2
25/a
c-6
%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cen
ter
Piv
ot I
rrig
ated
Cro
plan
dR
enta
l Rat
e R
ange
s –
2017
Sea
son
(Neb
rask
a F
arm
Rea
l Est
ate
Sur
vey)
Nor
thH
: $24
0/ac
A: $
205/
acL:
$16
0/ac
Nor
thw
est
H: $
200/
acA
: $15
5/ac
L: $
125/
ac
Sout
hwes
tH
: $24
5/ac
A: $
200/
acL:
$18
5/ac
Cen
tral
H: $
270/
acA
: $23
0/ac
L: $
215/
ac
Nor
thea
stH
: $35
0/ac
A: $
305/
acL:
$25
0/ac Ea
stH
: $32
5/ac
A: $
290/
acL:
$24
5/ac
By
Reg
ion
Hig
h (H
)Av
erag
e (A
)Lo
w (L
)So
uth
H: $
270/
acA
: $22
5/ac
L: $
195/
ac
Sout
heas
tH
: $31
5/ac
A: $
265/
acL:
$22
5/ac
21©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Irri
gate
d C
ropl
and
Ren
tal R
ates
–20
17 S
easo
n(U
SD
A-N
AS
S S
urve
y –
Sep
t. 8,
201
7)
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Neb
rask
a C
ash
Ren
tal R
ates
Pas
ture
and
Cow
-Cal
f P
airs
R
enta
l Rat
es
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Pas
ture
per
Acr
eA
vera
ge R
enta
l Rat
es –
2017
Sea
son
(Neb
rask
a F
arm
Rea
l Est
ate
Sur
vey)
Nor
th$2
5/ac
-4%
Nor
thw
est
$11/
ac-8
%
Sout
hwes
t$2
2/ac
-8%
Cen
tral
$34/
ac-6
%
Nor
thea
st$6
2/ac
-17% Ea
st$5
3/ac
-14%
Sout
heas
t$4
9/ac
-9%
Sout
h$3
5/ac
-5%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Pas
ture
per
Acr
eR
enta
l Rat
e R
ange
s –
2017
Sea
son
(Neb
rask
a F
arm
Rea
l Est
ate
Sur
vey) y)
Nor
thH
: $36
/ac
A: $
25/a
cL:
$16
/ac
Nor
thw
est
H: $
22/a
cA
: $11
/ac
L: $
7/ac
Sout
hwes
tH
: $32
/ac
A: $
22/a
cL:
$18
/ac
Cen
tral
H: $
49/a
cA
: $34
/ac
L: $
31/a
c
Nor
thea
stH
: $76
/ac
A: $
62/a
cL:
$42
/ac Ea
stH
: $70
/ac
A: $
53/a
cL:
$38
/ac
By R
egio
nH
igh
Gra
de (H
)Av
erag
e (A
)Lo
w G
rade
(L)
Sout
hH
: $47
/ac
A: $
35/a
cL:
$22
/ac
Sout
heas
tH
: $68
/ac
A: $
49/a
cL:
$33
/ac
22©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Pas
ture
per
Acr
eR
enta
l Rat
es –
2017
Sea
son
(US
DA
-NA
SS
Sur
vey
–S
ept.
8, 2
017)
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cow
-Cal
f P
airs
A
vera
ge R
enta
l Rat
es –
2017
Mon
thly
(Neb
rask
a F
arm
Rea
l Est
ate
Sur
vey)
Nor
th$6
1.05
/pai
r-4
%N
orth
wes
t$3
5.05
/pai
r-3
%
Sout
hwes
t$5
8.35
/pai
r-1
0%
Cen
tral
$53.
30/p
air
-9%
Nor
thea
st$5
3.20
/pai
r-1
1% East
$51.
10/p
air
-9%
Sout
heas
t$5
2.00
/pai
r-7
%
Sout
h$4
9.25
/pai
r-4
%
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cow
-Cal
f P
airs
R
enta
l Rat
e R
ange
s –
2017
Mon
thly
(Neb
rask
a F
arm
Rea
l Est
ate
Sur
vey) y)
Nor
thH
: $75
.80/
pair
A
: $61
.05/
pair
L:
$46
.75/
pair
Nor
thw
est
H: $
47.4
0/pa
irA
: $35
.05/
pair
L: $
25.5
0/pa
ir
Sout
hwes
tH
: $61
.45/
pair
A: $
51.6
5/pa
irL:
$41
.70/
pair
Cen
tral
H: $
66.1
5/pa
irA
: $53
.30/
pair
L: $
40.7
0/pa
ir
Nor
thea
stH
: $68
.30/
pair
A: $
53.2
0/pa
irL:
$42
.80/
pair
East
H: $
70.2
0/pa
irA
: $51
.10/
pair
L: $
44.1
0/pa
irBy
Reg
ion
Hig
h G
rade
(H)
Aver
age (
A)
Low
Gra
de (L
)So
uth
H: $
58.1
0/pa
irA
: $47
.30/
pair
L: $
38.8
0/pa
ir
Sout
heas
tH
: $65
.60/
pair
A: $
48.5
0/pa
irL:
$41
.15/
pair
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Agr
icul
tura
l Far
mla
nd L
ease
s S
etti
ng C
ash
Ren
tal R
ates
23©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Type
s of
Cro
plan
d L
ease
s
•Cro
p Sh
are:
lan
dow
ner
rece
ives
per
cent
age
of a
ctua
l cro
p yi
eld
aspa
ymen
t for
leas
ing
the
agri
cult
ural
land
to te
nant
. Lan
dow
ner
may
shar
e in
put a
nd p
rodu
ctio
n co
sts
of r
aisi
ng th
e cr
op.
•Cas
h Le
ase:
lan
dow
ner
rece
ives
an
agre
ed u
pon
cash
pay
men
tam
ount
for
leas
ing
the
agri
cult
ural
land
to th
e te
nant
.
•Fle
x Le
ase:
lan
dow
ner
and
tena
nt s
et a
bas
e ca
sh r
enta
l rat
e w
hich
can
flex
upo
n ac
tual
cro
p yi
elds
, pri
ces,
or
a co
mbi
nati
on o
f th
e tw
o.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Set
ting
Cas
h R
enta
l Rat
es
•Set
ting
a c
ash
rent
al r
ate
need
s to
be
viab
legi
ven
the
need
s of
the
land
lord
and
tena
nt.
•Rat
es m
ay b
e se
t acc
ordi
ng to
:•
Fix
ed a
mou
nt p
er a
cre
for
all a
cres
on
the
farm
.•
Fix
ed a
mou
nt p
er c
ropl
and
acre
.
•Dif
fere
nt m
etho
ds m
ay b
e us
ed to
cal
cula
te a
ren
tal r
ate,
but
all
met
hods
mus
t arr
ive
at a
via
ble
rate
.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Met
hods
for
Set
ting
Cas
h R
enta
l Rat
es
•Bas
ic m
etho
ds f
or e
stim
atin
g a
cash
ren
tal r
ate:
•A
djus
ting
sur
vey
data
.•
Cas
h eq
uiva
lent
fro
m c
rop
shar
e.•
Ret
urn
on in
vest
men
t.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Est
imat
ing
Cas
h R
enta
l Rat
es b
y A
djus
ting
Sur
vey
Dat
a
•Lan
d re
ntal
rat
e su
rvey
dat
a:•
Eva
luat
e av
aila
ble
cash
ren
tal s
urve
y da
ta to
est
abli
sh a
bas
elin
e in
the
land
lord
and
tena
nt n
egot
iati
on p
roce
ss.
•Ave
rage
yie
lds:
Cou
nty
Val
ueFa
rmV
alue
Cou
nty
Ren
tal R
ate
$150
/ac.
Cou
nty
Ren
t/B
ushe
l$1
.50/
bu.
Cor
n Y
ield
100
bu./a
c.A
PH
Yie
ldx
115
bu./a
c.
Cou
nty
Ren
t/B
ushe
l$1
.50/
bu.
Farm
Lev
el R
ent
$172
.50/
ac.
24©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cas
h E
quiv
alen
t Fro
m C
rop
Sha
re
•Ren
t pai
d to
land
lord
by
tena
nt b
ased
off
ow
ner’
s sh
are
of n
et r
etur
nspe
r ac
re.
•E
xam
ple
50/5
0 sp
lit:
Val
ueC
orn
Soyb
eans
Yie
ld (
50%
sha
re)
80 b
u./a
c.25
bu.
/ac.
Pri
ce/b
ushe
lx
$3.6
0/bu
.x
$9.4
0/bu
.
Inco
me
$288
/ac.
$235
/ac.
Ow
ner
Exp
ense
s-$
145/
ac.
-$85
/ac.
Net
Ret
urn
to O
wne
r (E
ffect
ive
Ren
t)$1
43/a
c.$1
50/a
c.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Ret
urn
on I
nves
tmen
t
•Mul
tipl
y th
e es
tim
ated
cur
rent
mar
ket v
alue
by
the
expe
cted
rat
e of
retu
rn to
det
erm
ine
the
rent
al r
ate
per
acre
.
Dry
land
Ir
riga
ted
Cro
plan
dC
ropl
and
Lan
d V
alue
$5,0
00/a
c.$8
,500
/ac.
Rat
e of
Ret
urn
x 2.
7-3.
1%x
2.8-
3.2%
Ren
tal R
ate
per
Acr
e$1
35-$
155/
ac.
$238
-$27
2/ac
.
Farm
***E
stim
ated
net
rat
es o
f re
turn
by
land
type
are
ava
ilab
le in
Tab
le 5
of
the
Neb
rask
a F
arm
Rea
l Est
ate
Mar
ket H
ighl
ight
s R
epor
t 201
6-20
17.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Ret
urn
on I
nves
tmen
t (co
ntin
ued)
•Sel
ecti
ng a
n ap
prop
riat
e m
arke
t val
ue a
nd r
ate
of r
etur
n ar
e ke
y to
esti
mat
ing
reas
onab
le r
enta
l rat
es.
•Neb
rask
a F
arm
Rea
l Est
ate
Sur
vey
prov
ides
est
imat
ed a
nnua
l net
rat
esof
ret
urn
(ret
urns
aft
er la
ndow
ners
hip
expe
nses
–i.e
. lan
d ta
xes)
.
•Sum
mar
ies
prov
ided
in th
e la
nd r
epor
t est
imat
e ne
t rat
es o
f re
turn
for
irri
gate
d cr
opla
nd, d
ryla
nd c
ropl
and,
and
gra
zing
land
.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Agr
icul
tura
l Far
mla
nd L
ease
s L
ease
Arr
ange
men
t Tre
nds
25©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cro
plan
d L
ease
Arr
ange
men
ts in
Neb
rask
a by
Dis
tric
t
Sou
rce:
UN
L N
ebra
ska
Far
m R
eal E
stat
e S
urve
y, 2
015
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Fac
tors
for
Fle
Cro
plan
d L
ease
Pro
visi
ons
in N
ebra
ska
Sou
rce:
UN
L N
ebra
ska
Far
m R
eal E
stat
e S
urve
y, 2
015
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Lea
se P
rovi
sion
s fo
r E
xist
ing
Far
m G
rain
Sto
rage
as
Par
t of
Cro
plan
d R
enta
l Arr
ange
men
ts
Sou
rce:
UN
L N
ebra
ska
Far
m R
eal E
stat
e S
urve
y, 2
015
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Exp
ense
s P
aid
by th
e L
andl
ord
to th
e Te
nant
in C
omm
on C
rop
Sha
re L
ease
s
Sou
rce:
UN
L N
ebra
ska
Far
m R
eal E
stat
e S
urve
y, 2
017
Seed 33
: 67
2080
40 :
6044
5650
: 50
7525
Fert
ilize
r33
: 67
3367
40 :
6084
1650
: 50
8911
Che
mic
als
33 :
6728
7240
: 60
6238
50 :
5077
23
Ave
rage
Per
cent
Dist
ribu
tion
- - -
- - -
- - -
Perc
ent -
- - -
- - -
- -
Expe
nse a
nd C
rop
Shar
e Lea
se
Arr
ange
men
tLa
ndlo
rd
Prop
ortio
nally
Sha
reLa
ndlo
rd D
o N
ot
Prop
ortio
nally
Sha
re
26©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Pre
vale
nce
of C
rop
Sha
re L
ease
Arr
ange
men
ts in
Neb
rask
a
Sou
rce:
UN
L N
ebra
ska
Far
m R
eal E
stat
e S
urve
y, 2
017
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Mar
kete
r of
Lan
dlor
d’s
Por
tion
of
Cro
p P
rodu
ced
Und
er S
hare
Lea
se
Sou
rce:
UN
L N
ebra
ska
Far
m R
eal E
stat
e S
urve
y, 2
017
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Filla
ble
Leas
es –
AgL
ease
101.
org
Cli
ck
Doc
umen
t L
ibra
ry
Fil
labl
e P
DF
For
ms
Lea
se
Pub
lica
tion
s
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
How
Wil
l The
Far
m b
e M
anag
ed?
27©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Opt
ions
for
kee
ping
•Est
imat
e w
hat t
he p
oten
tial
inco
me
mig
ht b
e•
Eit
her
from
far
min
g it
you
rsel
f•
Doe
s it
fit
the
curr
ent o
pera
tion
? (n
ext g
ener
atio
n)
•H
avin
g it
cus
tom
far
med
•S
ome
are
havi
ng it
cus
tom
far
med
for
a %
of
the
prod
ucti
on –
to
mot
ivat
e fa
rmer
to p
rodu
ce
•F
rom
ren
tal
•C
rop
shar
e re
nt•
Cas
h re
nt•
Fle
xibl
e ca
sh r
ent
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Pro
fess
iona
l Far
m M
anag
er•
Con
side
r us
e if
Cus
tom
Far
min
g or
Ren
ting
•Ta
ke c
are
of m
anag
ing
the
asse
t –es
peci
ally
val
uabl
e fo
r ab
sent
ee o
wne
rs
•C
harg
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
nt a
gree
men
ts o
r cu
stom
far
min
g)•
Dep
ends
on
wha
t you
are
ask
ing
them
to d
o
•In
som
e ca
ses,
the
serv
ice
is v
ery
wor
th w
hile
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Opt
ions
for
kee
ping
-co
ntin
ued
•A b
it m
ore
abou
t ren
ting
•C
usto
m F
arm
ing
–an
y qu
esti
ons?
•C
rop
Sha
re –
(if
you
do n
ot m
ind
the
mar
keti
ng p
art)
•S
till
a v
ery
fair
way
to r
ent –
for
both
land
owne
r an
d te
nant
•S
ome
land
lord
s ar
e ta
king
a s
mal
ler
perc
ent a
nd p
ayin
g no
inpu
t exp
ense
s
Que
stio
ns?
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cro
p S
hare
-co
ntin
ued
•Lan
dlor
d an
d te
nant
sha
re in
the
expe
nse
and
shar
e in
the
risk
asso
ciat
ed w
ith
prod
ucin
g th
e cr
op
•Ove
r hi
stor
y a
very
fai
r w
ay to
ren
t
•Cro
p sh
are
has
lost
pop
ular
ity
•L
andl
ords
do
not l
ike
to:
•pa
y ex
pens
es•
wor
ry a
bout
mar
keti
ng th
eir
crop
28©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cro
p S
hare
-co
ntin
ued
Typi
cal (
hist
oric
) pr
ovis
ions
•Lan
dlor
d•
Pay
s fo
r %
of
fert
iliz
er, i
nsec
tici
de, f
ungi
cide
, and
her
bici
de•
% o
f Ir
riga
tion
fue
l or
elec
tric
ity
•%
of
crop
insu
ranc
e•
Irri
gati
on S
yste
m o
wne
rshi
p co
sts
•(d
epre
ciat
ion,
insu
ranc
e, r
epai
rs, t
axes
, int
eres
t)
•L
and
taxe
s an
d la
nd m
aint
enan
ce
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cro
p S
hare
-co
ntin
ued
Typi
call
y
•Ten
ant p
ays
for
•%
of
fert
iliz
er, i
nsec
tici
de, f
ungi
cide
, and
her
bici
de•
% o
f cr
op in
sura
nce
•A
ll s
eed
•A
ll f
ield
ope
rati
ons
•T
rans
port
atio
n of
land
lord
’s s
hare
of
crop
to d
esig
nate
d lo
catio
n
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Opt
ions
for
kee
ping
-co
ntin
ued
•Mor
e ab
out r
enti
ng•
Cas
h le
ases
–tw
o ty
pes
–st
raig
ht c
ash
leas
es a
nd f
lexi
ble
cash
leas
es•
Str
aigh
t lea
se m
eans
that
you
get
pai
d X
X d
olla
rs p
er a
cre
for
the
leas
e pe
r ye
ar•
Fle
xibl
e le
ase
mea
ns y
ou th
at th
e ac
tual
leas
e is
fle
xed
by s
ome
vari
able
–us
uall
y pr
ice
and/
or y
ield
•C
onsi
der
putt
ing
low
er a
nd u
pper
lim
its
on th
e ‘f
lex’
Que
stio
ns?
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Wri
tten
Lea
ses
and
Lea
se P
rovi
sion
s
29©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Wri
tten
Lea
se –
Mus
t Hav
e’s
•Dat
e of
ent
ry a
nd e
xpir
atio
n
•Nam
es a
nd a
ddre
sses
of
part
ies
invo
lved
•Leg
al d
escr
ipti
on o
f th
e pr
oper
ty to
be
leas
ed•
If m
ulti
ple
rate
s, h
ave
lega
l des
crip
tion
of
each
par
titi
on
•Sig
natu
res
•Wha
t con
stit
utes
a “
lega
l” w
ritt
en le
ase
in N
ebra
ska?
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Term
s
•Pro
visi
ons
for
term
inat
ion
•Pro
visi
ons
for
reim
burs
emen
t of
soil
am
endm
ents
•Act
s of
neg
lige
nce
that
giv
e ri
se to
def
ault
•Ten
ant’
s ri
ghts
dur
ing
tran
sfer
or
cond
emna
tion
•Ten
ant’
s ri
ghts
dur
ing
term
inat
ion
or e
arly
rel
ease
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Cri
tica
l Iss
ues
•Hun
ting
rig
hts
•A
llow
or
reta
in –
mus
t spe
cify
•Sto
ver
•A
llow
har
vest
or
reta
in•
If h
arve
st, h
ow o
ften
•W
ill t
he r
ent i
ncre
ase
wit
h us
e
•Gra
zing
•A
llow
, whe
n, h
ow m
any,
ani
mal
/fen
cing
nee
ds
•Eas
emen
ts•
Do
they
exi
st a
nd in
wha
t ter
ms
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Wri
tten
Lea
ses
–pl
ease
!!
•No
cook
ie c
utte
r le
ases
, but
mod
els
do e
xist
•ag
leas
e101
.org
•Get
lega
l hel
p if
nee
ded
•Hav
e le
ase
revi
ewed
by
an a
ttor
ney
30©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Sum
mat
ion
•Lan
d ow
ners
hip
is r
ewar
ding
–if
you
put
in th
e w
ork
•Kno
w y
our
inve
stm
ent a
nd w
hat y
ou e
xpec
t the
inve
stm
ent t
o do
for
you
•Get
hel
p w
hen
you
need
it
•Get
trai
ning
–ne
ed to
kno
w w
hat y
ou d
on’t
kno
w
•Fam
ily
com
mun
icat
ions
can
be
chal
leng
ing,
but
nev
er ig
nore
d
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Beg
inni
ng F
arm
er a
nd
Ran
cher
Res
ourc
es
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Res
ourc
es A
vail
able
to Y
ou
•Far
m C
redi
t Ser
vice
s•Y
oung
and
Beg
inni
ng F
arm
er P
rogr
am•
35 y
ear
or y
oung
er w
ith
less
than
10
year
s of
exp
erie
nce
•L
oans
for
land
pur
chas
e, o
pera
tion
s, in
sura
nce,
and
bus
ines
s ac
tivi
ty•
Up
to $
500/
year
for
edu
cati
onal
rei
mbu
rsem
ents
•Y
outh
in A
g lo
ans
up to
$25
00/s
tude
nt•
Col
lege
sch
olar
ship
up
to $
2000
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Res
ourc
es•N
ebra
ska
Inve
stm
ent F
inan
ce A
utho
rity
•Beg
inni
ng F
arm
er a
nd R
anch
er P
rogr
am•L
and
purc
hase
, equ
ipm
ent,
mac
hine
ry,
bree
ding
live
stoc
k•F
acil
itat
es lo
ans
up to
$52
0,00
0 to
thos
ew
ho d
o no
t alr
eady
ow
n a
subs
tant
ial
amou
nt o
f la
nd w
ith
a ne
t wor
th n
ot to
exce
ed $
500,
000
31©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Res
ourc
es -
cont
inue
d•N
ebra
ska
Dep
artm
ent o
f R
even
ue•P
rovi
des
a re
fund
able
tax
cred
it a
gain
stsa
les
and
use
taxe
s or
inco
me
tax
liab
ilit
yfo
r pa
yers
eng
aged
in li
vest
ock
prod
ucti
onw
ho in
vest
$50
K o
r m
ore
for
expa
nsio
n or
mod
erni
zati
on•T
ax c
redi
t is
for
10%
of
the
inve
stm
ent n
otto
exc
eed
$30K
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Res
ourc
es -
cont
inue
d
•Neb
rask
a D
epar
tmen
t of A
g•
Beg
inni
ng F
arm
er T
ax C
redi
t Pro
gram
•O
ffer
s a
refu
ndab
le ta
x cr
edit
to e
xist
ing
farm
er/l
ives
tock
pro
duce
rs w
ho a
gree
to r
ent t
o be
ginn
ing
farm
ers/
ranc
hers
•M
ust b
e a
thre
e-ye
ar le
ase
•C
redi
t is
equa
l to
10%
of
the
cash
ren
t or
15%
of
shar
e re
nt (
to in
clud
e li
vest
ock)
•P
erso
nal P
rope
rty
Tax
Exe
mpt
ion
•U
p to
$10
0K o
f pe
rson
al p
rope
rty
used
in p
rodu
ctio
n m
ay b
e ex
empt
fro
m p
erso
nal
prop
erty
tax
•M
ust a
pply
by
Nov
. 1 o
f th
e ye
ar p
rior
to c
redi
t sou
ght
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Res
ourc
es -
cont
inue
d
•Neb
rask
a D
epar
tmen
t of A
g•
Beg
inni
ng F
arm
er T
ax C
redi
t Pro
gram
-te
nant
•M
ust b
e a
resi
dent
of
Neb
rask
a•
Mus
t hav
e fa
rmed
for
less
that
10
of th
e la
st 1
5 ye
ars
•N
et w
orth
less
than
$20
0K•
Mus
t par
tici
pate
in a
n ap
prov
ed f
inan
cial
man
agem
ent p
rogr
am
•B
egin
ning
Far
mer
Tax
Cre
dit P
rogr
am –
owne
r•
Mus
t hav
e ow
ners
hip
•If
a c
lose
rel
ativ
e, m
ust a
tten
d an
app
rove
d su
cces
sion
wor
ksho
p an
d th
e as
set i
nclu
ded
in
the
resu
ltan
t pla
n
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Res
ourc
es•
Far
m S
ervi
ce A
genc
y•
Mus
t not
hav
e op
erat
ed a
far
m f
or m
ore
than
10
year
s•
Doe
s no
t ow
n m
ore
than
30%
of
the
aver
age
size
far
m in
the
coun
ty•
Mus
t sub
stan
tial
ly p
arti
cipa
te in
the
farm
•M
ust m
eet o
ther
eli
gibi
lity
req
uire
men
ts•
Loa
ns•
Dir
ect F
arm
Ow
ners
hip
-M
ax $
300,
000;
40
year
term
fix
ed in
t.•
Dir
ect D
own
Pay
men
t –5%
dow
n, w
ith
the
low
er o
f•
45%
of
farm
pri
ce o
r•
$667
,000
or
•45
% o
f ap
prai
sed
valu
e to
$66
7,00
0•
FS
A m
ust n
ot f
inan
ce m
ore
than
$30
0,00
0•
20-y
r fi
xed
int.
32©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Res
ourc
es -
cont
inue
d•F
arm
Ser
vice
Age
ncy
•L
oans
con
t.•
Mic
rolo
an –
Max
$50
,000
; 1-7
-yea
rs f
ixed
int.
•U
se f
or in
itia
l sta
rt, e
xpen
ses,
fam
ily
livi
ng, e
quip
, liv
esto
ck, e
tc.
–ge
ared
for
thos
e w
ith
less
far
m m
anag
emen
t exp
.
•D
irec
t Ope
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,000
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ixed
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r ph
ysic
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se f
or q
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Far
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odit
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n -
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00 m
ax, 4
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s ne
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and
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nd g
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ntee
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FS
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Far
m p
urch
ase,
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nd la
nd a
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siti
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an a
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app
lies
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heri
ted
a F
arm
, Now
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t?
Res
ourc
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cont
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m S
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ce A
genc
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ns•
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rant
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Ope
rati
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Max
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nter
est i
s ne
goti
ated
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pica
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ng e
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uara
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–M
ax $
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ar te
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nter
est n
egot
iate
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con
serv
atio
n pr
acti
ce d
evel
opm
ent o
n an
app
rove
d pl
an
So Y
ou’v
e In
heri
ted
a F
arm
, Now
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t?
Tech
nica
l Ass
ista
nce
•NR
CS
–w
ater
, soi
l, an
d w
ildl
ife
cons
erva
tion
pro
gram
s w
ith
fund
edas
sist
ance
on
desi
red
acti
viti
es•L
egal
Aid
of
Neb
rask
a –
wor
ks to
pro
vide
gui
danc
e fo
r es
tate
and
tran
siti
on p
lans
, bus
ines
s or
gani
zati
on, s
uppo
rt p
rogr
ams,
fin
anci
alst
atem
ents
, and
oth
er le
gal i
ssue
s•C
ente
r fo
r R
ural
Aff
airs
-w
orks
to p
rovi
de g
uida
nce
for
esta
te a
ndtr
ansi
tion
pla
ns, b
usin
ess
orga
niza
tion
, sup
port
pro
gram
s, f
inan
cial
stat
emen
ts, a
nd o
ther
lega
l iss
ues
•Neb
rask
a S
usta
inab
le A
g S
ocie
ty –
educ
atio
nal t
rain
ing
and
supp
ort t
oth
ose
wan
ting
to e
valu
ate
and
plan
the
farm
ent
erpr
ise
from
asu
stai
nabl
e vi
ew
33©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Que
stio
ns?
Ext
ensi
on is
a D
ivis
ion
of th
e In
stit
ute
of A
gric
ultu
re a
nd N
atur
al R
esou
rces
at t
he U
nive
rsit
y of
Neb
rask
a–L
inco
ln c
oope
rati
ng w
ith
the
Cou
ntie
s an
d th
e U
nite
d S
tate
s D
epar
tmen
t of A
gric
ultu
re.
Uni
vers
ity
of N
ebra
ska–
Lin
coln
Ext
ensi
on e
duca
tion
al p
rogr
ams
abid
e w
ith
the
nond
iscr
imin
atio
n po
lici
es o
f th
e U
nive
rsit
y of
Neb
rask
a–L
inco
ln a
nd th
e U
nite
d S
tate
s D
epar
tmen
t of A
gric
ultu
re.
So Y
ou’v
e In
heri
ted
a F
arm
, Now
Wha
t?
Ext
ensi
on is
a D
ivis
ion
of th
e In
stit
ute
of A
gric
ultu
re a
nd N
atur
al R
esou
rces
at
the
Uni
vers
ity
of N
ebra
ska–
Lin
coln
co
oper
atin
g w
ith
the
Cou
ntie
s an
d th
e U
nite
d S
tate
s D
epar
tmen
t of
Agr
icul
ture
.
Uni
vers
ity
of N
ebra
ska–
Lin
coln
E
xten
sion
edu
cati
onal
pro
gram
s ab
ide
wit
h th
e no
ndis
crim
inat
ion
poli
cies
of
the
Uni
vers
ity
of N
ebra
ska–
Lin
coln
an
d th
e U
nite
d S
tate
s D
epar
tmen
t of
Agr
icul
ture
.
34©
201
7 U
NL
Land
Man
agem
ent P
rogr
am
Jim
Jan
sen
& Al
lan
Vyhn
alek
All R
ight
s R
eser
ved.
Loans for Your Farm or Ranch
Type of Loan Purpose Maximum Loan Amount
Rates and Terms
Direct loans are made and serviced directly by USDA Farm Service Agency (FSA)
Direct Farm Ownership
Go
These loans can help you purchase or enlarge a farm or ranch, make a down payment on a farm or ranch, construct a new or improve an existing farm or ranch building, pay closing costs, and pay for soil and water conservation and protection.
$300,000 Term: Up to 40 years Interest rate: fixed
Direct Down Payment
Go
These loans can help you purchase a farm or ranch. They require a 5% down payment.
The lowest of the following:
• 45% of the farm orranch
• Purchase price upto $667,000
• 45% of theappraised value upto $667,000
• FSA portion cannotexceed $300,000
Term: Up to 20 years Interest rate: fixed
United States Department of Agriculture
35
Microloans
Go Microloans can be used for all approved operating expenses as authorized by the FSA Operating Loan Program, including but not limited to: Initial start-up expenses; annual expenses such as seed, fertilizer, utilities, land rents; marketing and distribution expenses; family living expenses; purchase of livestock, equipment, and other materials essential to farm operations; minor farm improvements such as wells and coolers; hoop houses to extend the growing season; essential tools; irrigation; and/or delivery vehicles. Note: Microloans are a simplified, streamlined program requiring less paperwork and less farm management experience than some other lending programs.
$50,000 Term: 1-7 years, depending upon purpose. Interest rate: fixed
Direct Operating
Go
These loans can help you purchase livestock, equipment, marketing costs, land and water development, pay closing costs and borrower training costs, refinance farm-related debts, and pay for minor real-estate repairs and annual operating expenses.
$300,000 Term: 1 to 7 years Interest rate: fixed
36
Direct Emergency
Go
These loans can help you if you suffered a qualifying loss caused by natural disasters that damaged your farming or ranching operation. Emergency loan funds may be used to restore or replace essential property and working capital, pay all or part of production costs associated with the disaster year, pay essential family living expenses, reorganize the farming operation, and refinance certain debts.
The lowest of the following:
• 100% actual orphysical losses
• $500,000
Term: 1 to 7 years (possibly up to 20 years) for nonreal estate purposes Up to 40 years for physical losses on real-estate Interest rate: fixed
Farm Storage Facility Loan Program
Go
To build or upgrade permanent facilities to store commodities; cover the structure and equipment required to get fruits and vegetables washed, treated, and packed along with the cold storage that had been previously covered exclusively.
$500,000 Loan terms are 7 years, 10 years, or 12 years, depending on the amount of the loan.
Youth Loans
Go To establish and operate income-producing projects of modest size in connection with their participation in 4-H clubs, FFA, and similar organizations. A Youth loan is available to persons between the ages of 10 and 20 years.
$5,000 Term: 1 to 7 years Interest rate: fixed
Guaranteed loans are made and serviced by commercial lenders like banks or credit unions.
37
Guaranteed Farm Ownership
Go
These loans can help you purchase or enlarge a farm or ranch, construct a new or improve an existing farm or ranch building, pay closing costs, refinance qualifying debt, and pay for soil and water conservation and protection. There is a fee of 1.5% of the loan amount.
The maximum loan amount is adjusted annually for inflation and is currently $1,392,000.
Term: Up to 40 years The interest rate is negotiated by you and your lender and may be fixed, variable, or both
Guaranteed Operating
Go
Guaranteed Operating Loans (OL) may be used to purchase livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance, and other operating expenses. Operating Loans can also be used to pay for minor improvements to buildings, costs associated with land and water development, family living expenses, and to refinance debts under certain conditions. There is a fee of 1.5% of the loan amount.
The maximum loan amount is adjusted annually for inflation and is currently $1,392,000.
Term: 1 to 7 years The interest rate is negotiated by you and your lender and may be fixed, variable, or both.
Guaranteed Conservation
Go
These loans can help you complete a conservation practice in an approved conservation or forest stewardship management plan.
The maximum loan amount is adjusted annually for inflation and is currently $1,392,000.
Term: Up to 20 years The interest rate is negotiated by you and your lender and may be fixed, variable, or both.
38
Farmland Leasing Checklist Adapted by: Robert Tigner, Tim Lemmons, and Allan Vyhnalek, UNL Extension Educators1
A written contract is still an essential business practice when leasing farm property. It forces detailed consideration, communication, and understanding by both parties. It serves as a handy reference in case details are forgotten or there is a death of the tenant or landlord.
The contract should encourage the most profitable, long-term operation of the farm and be beneficial for both parties. Are the returns proportional to the contributions both tenant and landlord make to the business? Will the lease prevent or discourage a tenant from operating the farm in the same way a well-financed owner-operator would run it? Are the best farming methods, conservation practices, and/or environmental practices utilized? What is the plan for needed improvements? Every contract or lease agreement will one day terminate; how is termination to be handled? What method(s) will be used to settle accounts?
The following checklist will assist tenants and landlords to consider components of a well-designed lease agreement. It is advisable to have an attorney for one party prepare the lease, with a review by the attorney for the other party.
Parties to Lease and Description
___ Date the lease is entered into. ___ Names and addresses of the landlord and tenant. ___ Legal description of the leased property. ___ Signatures of the landlord and tenant.
General Terms
___Time period of the lease, including beginning and ending dates. ___Rental amount for cash lease; base rent for flexible cash leases, and respective shares and contributions for a crop-share lease.
___When and how rent will be paid and penalties for late payments. ___What is the clause, if any, for automatic renewal of the lease? ___Provision for carrying liability insurance on the property ___Insuring the crop: under cash leases, tenant pays all premiums and receives all indemnities; under crop-share, each party can insure their share.
___Statement that the landlord and tenant do not intend to create a partnership by entering into the agreement. Neither party will obligate the other for debts/liabilities or damages.
___Conditions under which the tenant may or may not sub-lease the property. (Also consider hunting rights, grazing stalks)
___Specify mineral and water rights. ___If tenant is given rights to farm improvements (buildings, bins, for example) at what rental rate? ___If landlord does not own all irrigation equipment, how rent is adjusted to reflect that change? ___Provisions for landowner(s) and tenant(s) reporting of crop/land/business operations to include what
these reports will include, how, where, by what means, and how often this reporting will take place.
Termination
___When and how the lease may be terminated and requirements for notice of termination? ___Reimbursement provisions for crop nutrients, lime and/or completed fieldwork upon termination of the lease.
___Acts of the tenant that would constitute default of the lease. ___Tenant's rights if the property is transferred or condemned during the lease period. ___Reimbursement provisions for a crop still in the ground when the lease is terminated.
39
Operation and Maintenance
___Desired or prohibited farming practices, including types of chemicals that may not be used on the property.
___Process of measuring and maintaining soil fertility and pH levels. (Include minimum required amounts of fertility and remedial actions)
___Which party is responsible for controlling noxious weeds? ___Which party is responsible for maintaining fences? ___Whether the tenant has the right to make improvements and be compensated for improvements. ___Is tenant responsible for non-crop acres (for example for mowing)? How is he compensated for that
work?
___Will the tenant be required to carry insurance to cover costs of mitigating his activity – like an accidental
chemical spill? ___Whether the tenant has the right to utilize improvements made by the landlord. ___Provisions for soil-conservation practices. ___Statement regarding the existing environmental status of the property and responsibility to minimize activities that may cause contamination.
___Use of non-cropland, garden plots, trees, buildings, grain bins, pasture or other areas not rented for cropland.
___ Provision identifying who is responsible for maintenance on irrigation equipment or other farm use assets identified in the lease.
___Any provisions for the compensation of the tenant(s) for conducting improvement(s) or maintenance on the property or associated use assets.
Landlord Rights and Government Payment
___Landlord's right to enter the property for specific purposes. ___Landlord's right to a security interest in the crops or other provisions for ensuring payment. ___Statement of which party will participate in federal farm programs, including responsibility for eligibility and receipt of payments.
___Nature of landlord participation in management. This may relate to issues regarding income and self- employment, taxes, social security payments, and estate planning.
Arbitration of Difference
___Provision that any amendments must be in writing and signed by both parties. ___Procedure for resolving disputes, including the applicable state statutes.
Crop-Share Provisions
___General agreement, sharing of crops and tenant's contribution of machinery and labor. Each party should share returns in the same proportion as resources are contributed.
___Sharing of operating expenses, generally variable expenses are shared in the same percentage as the crop share; if there are adjustments for no-till, custom application, liming or any new technologies
adopted. ___Storage and/or delivery of landlords share of crops. ___Compensation upon termination of the lease. (example: if tenant paid for and applied lime) ___What records are to be kept by whom and how will this information be shared.
1 Ohio State University Extension Fact Sheet, FR-0003-01, Donald J. Breece, District Specialist, Farm Management, Southwest District
For more information: http://www.aglease101.org/DocLib/default.aspx#LeasePubs – Leasing Publications http://www.ianrpubs.unl.edu/live/ec862/build/ec862.pdf - Flexible Leasing of Farmland http://aglease101.org/ - for good general farmland lease information
40
Che
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167
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Per A
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ce: U
SDA
Nat
iona
l Agr
icul
tura
l Sta
tistic
s Se
rvic
e - S
ept 8
, 201
7
Website: h
ttps:
//ww
w.n
ass.
usda
.gov
/Sta
tistic
s_by
_Sta
te/N
ebra
ska/
Publ
icat
ions
/Cou
nty_
Estim
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/ 41
Cus
ter
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Linc
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51.5
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9
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th46
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k40
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158
But
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188
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Ant
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e14
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Har
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ayer
126
Dod
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Dix
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Ada
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142
Saun
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198
Phel
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Sew
ard
162
How
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112
Gre
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103
Cum
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Hitc
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Fillm
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138
Fran
klin
102
Whe
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96
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100
Mad
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194
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Nuc
kolls
132
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205
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man
100
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rney
125
Jeffe
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132
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135
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122
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214
Nem
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201
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212
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240
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203
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tSi
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on-Ir
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h R
ent P
aid
Per A
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Sour
ce: U
SDA
Nat
iona
l Agr
icul
tura
l Sta
tistic
s Se
rvic
e - S
ept 8
, 201
7
Web
site
: http
s://w
ww
.nas
s.us
da.g
ov/S
tatis
tics_
by_S
tate
/Neb
rask
a/Pu
blic
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ount
y_Es
timat
es/
42
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43.5
Daw
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35.5
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8.9
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19.5
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37.5
Fran
klin
32
Whe
eler
33.5
Web
ster
40.5
Nuc
kolls
45
Col
fax
66
Red
Will
ow22
Sher
man
42
Kea
rney
35.5
Jeffe
rson
45Pa
wne
e43
Boy
d36
.5
Lanc
aste
r44
Mer
rick
55
Gos
per
35.5
Ham
ilton
37.5
Stan
ton
71.5
Nem
aha
51.5
Ric
hard
son
45.5
Thur
ston
66.5
John
son
47Sarp
y38
Dou
glas
57.5
Dak
ota
43
Was
hing
ton
58
Dol
lars
/Acr
e55
+
40 -
55
25 -
39
< 25
Unp
ublis
hed
2017
Neb
rask
a Pa
stur
e C
ash
Ren
t Pai
d Pe
r Acr
e
Sour
ce: U
SDA
Nat
iona
l Agr
icul
tura
l Sta
tistic
s Se
rvic
e - S
ept 8
, 201
7
Che
rry
Gra
ntSc
otts
Blu
ff
Mor
rill
Cheyenn
e
Kno
x
Wayne
Mad
ison
Website: h
ttps:
//ww
w.n
ass.
usda
.gov
/Sta
tistic
s_by
_Sta
te/N
ebra
ska/
Publ
icat
ions
/Cou
nty_
Estim
ates
/ 43