Rooster Ag’ Farm Management division is dedicated to your needs. When working with us to manage your leases, we make sure you have the best cash lease in place for your specific needs. There are many variables to consider when formatting your lease that Rooster Ag’ takes into consideration. To help you understand, we have included a list of several key factors we take into consideration on your behalf when formatting your lease. Please find the factors listed below, and let us know if we can be of any assistance to you and your leasing needs.
Soils and Productivity of each soil type
Crop Input Costs
Grain Facility Storage
Crop Insurance Yield per specific field
Prior to developing Rooster Ag’s proprietary rent formula, we were putting farms out for bid like all the other Farm Management companies.
After years of high emotions for all involved. We realized that by looking over our shoulder of cash rents achieved by the old bidding process, that cash rents can be formulated by using the price of corn and yield potential for each field.
As a result, Rooster Ag’s proprietary cash rent formula is calculated using specific farm corn yield, the Chicago Board of Trade (CBOT) December Corn Price for the year the lease is being written, multiplied by a % of the formulated revenue for the farm, which is determined by that specific farm attributes.
Below outlines a summary of actual rents paid on PRIME Illinois farms that we have leased over the past 10 years which clearly shows the correlation between yields and corn price to the associated cash rent.
Using this fact based process removes the emotion of cash rent negotiation, allows farmers to start their planning and marketing process, all which is the basis for our lifelong lease opportunities.
|Lease Year||APH||Avg. CBOT
|2011||190||$ 4.37||$275 – $350|
|2012||190||$ 6.17||$350 – $390|
|2013||190||$ 5.86||$370 – $425|
|2014||190||$ 5.30||$375 – $465|
|2015||190||$ 4.35||$305 – $375|
|2016||200||$ 4.27||$315 – $335|
|2017||200||$ 3.91||$300 – $330|
|2018||200||$ 4.08||$310 – $345|
|2019||200||$ 4.04||$315 – $350|
|2020||200||$ 4.10||$300 – $325|