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Beef Backgrounding Finishing
Kansas Farm Management Association
Beef Backgrounding …
November 17, 2014
Leasing Papers
and Presentations
www.AgManager.info
2
requires taking the time to
put all the costs of
production into a budget
framework and allocate the
costs paid by each party.
Importantly, tenants need
to be compensated for
labor and owned
machinery, while
landowners need to be
compensated for the value
of their land and other
owned assets (e.g. center‐
pivot). Historically, the
proportions have been
regionally consistent with
landowners in many parts
of western and central
Kansas receiving 1/3 of the
harvest, while landowners
in Northeast Kansas can
receive as much as 50% of
the harvest. The differences
in returns to the
landowners are reflecting
the productive potential of
land in different parts of
the state, which is directly
interpreted as the $/ac
value.
The third and fourth
principles apply as much to
cash leases as crop share
leases. The third principle
is important to encourage
the tenant to treat the land
as if they own it
themselves. This may mean
making investments in the
long‐term health of the soil
or making investments to
reduce soil erosion. By
guaranteeing that their
return will be realized,
either by getting to farm
the land for the life of the
investments or being
compensated for residual
value if they no longer
farm that land, then the
tenant will be willing to
treat the land as if they
have an ownership stake in
it.
The fourth principle is the
basis for all good leases:
good communication
between the landowner
and the tenant. By keeping
both parties informed of
changes in market
conditions, production
practices, future plans
(selling land, passing it to
heirs), etc., the opportunity
for conflict is greatly
reduced. Leasing is a
business relationship
between two parties and if
they are both satisfied with
the outcome of the leasing
arrangement, then there is
stability. This stability is
important to landowners
wanting to manage their
assets as well as tenants
who want to make their
production and financing
decisions based on longer
horizons.
Cover …
October 21, 2011
Leasing Papers
and Presentations
What are the most common pricing methods for grazing growing crops
or crop residue?
Like grass pasture, grazing growing crops and crop residues may be priced on a flat‐
rate basis, but often these forages are priced on a time‐weight or gain basis. Common
time‐weight pricing methods include $/head/day or $/cwt/month. The $/head/day
pricing method offers the landowner less risk of overgrazing, while the cattle owner
will have reduced death loss risk. The $/cwt/month method can be based on the
beginning or average weight of the livestock. In each case the animals must be
weighed (once for the beginning weight method, twice for the average weight
method). If the beginning weight method is used, the cattle owner will bear most of
the production risk, and the landowner will have little incentive to provide service. If
the average weight method is used, the landowner will share additional production
risk with the cattle owner. Pricing on a gain basis ($/lb of gain) is common in wheat
grazing situations. When pricing of a gain basis, production risk is shared by the
landowner and cattle owner, and each has an incentive to manage for gain.
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Frequently Asked Questions on Pasture Leases in Kansas
(Publication: AM‐TJD‐2011.2)
4 …
June 5, 2015
Financial Management
survive. The Kansas Farm Management Association (KFMA) data
shows … least half of their time and management devoted to livestock, referred …
February 28, 2012
Macro and Global Economic Perspectives
Kansas Society of Farm Managers and Rural Appraisers
Salina … Kansas Society of Farm Managers and Rural Appraisers
Salina …
June 5, 2015
KFMA Research
survive. The Kansas Farm Management Association (KFMA) data
shows … least half of their time and management devoted to livestock, referred …
July 22, 2015
Dairy Program Resources
MPP-Dairy, is a voluntary risk management
program to protect producers … program through the Risk Management Agency, for the remaining …
January 18, 2013
Leasing Papers
and Presentations
or
KSU Agricultural Economics
Farm Management PFT
January 18, 2013
KANSAS … Used 20% to reflect high volatility in current
commodity markets
2012 Non‐Irrigated Rental Rates
Farm Management
Region
Predicted Crop Share …
September 14, 2016
Agribusiness Papers
Financial stressors
and retiring managers have also been the impetus … some investigating. Regional managers at CoBank were contacted …
Breakout Sessions
pay using the
Kansas Farm Management Association data.
Do Kansas Farmers Pay Taxes?
Allen M. Featherstone, Kevin Herbel, Leah Tsoodle
Introduction
• … 55.1% via property tax
Objectives
• Use Kansas Farm Management Data to examine the taxes paid by farmers
• … Discuss the outlook for agricultural real estate taxes in the future
Methods
• Use Kansas Farm Management Data to examine the taxes paid from 2010 through 2014
• …