Cash Lease & Rent Factors

Cash Lease Factors

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.

Presidential Election

Government Programs

COVID-19

Tariffs

Land Values/ROI

Crop Production

Marketing/Commodity Price

Soils and Productivity of each soil type

Crop Input Costs

Draining/Tiling

Grain Facility Storage

Crop Insurance Yield per specific field

corn on farm
About Jason Desplinter
Jason DeSplinter | Farm Manager
Independent Real Estate Broker
(309) 644-2055
jason@roosterag.com
steve edwards cash leasing
Steve Edwards | Farm & Property Manager
Independent Real Estate Broker
(630) 774-7470
steve@roosterag.com

Cash Rent Factors

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
(Jun—Sep)
Range
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
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  • CASH RENT CALCULATOR

    Currently our Cash Rent Calculator is for select counties in Northern and Central Illinois.

  • Northern IL / Central IL

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