Farmers, ranchers, landowners, renters, real estate agents, bankers and interested neighbors all have one question in common: What is a fair market rate for renting agricultural land?

If we use the age-old math that herd bulls should be worth five to six times a feeder calf, then get ready for $10,000 to $14,000 bulls this winter/spring! With cow numbers at all-time lows, do you gamble that bulls will be plentiful and cost less? Is it time to consider leasing a bull?

What do these three things have in common? Most farmers and ranchers would tell you that they miss the “good old days.” You know, the days when a man’s word was much more trustworthy than any piece of paper.

Collecting and organizing data is crucial for preparing and planning for the next crop year. For example, data on acreage, yield and expected prices can help estimate gross returns. This information is valuable when negotiating with a banker for a new loan or refinancing an existing one. It’s also useful for setting lease terms with a landlord for the upcoming year.

Agricultural leases are an important tool heavily relied on by many farmers and ranchers across the U.S. agricultural industry. Although the parties are free to negotiate a wide variety of terms, agriculture leases should, at minimum, contain the “Four P's”: the parties, property, period and payment.

As a dairy producer, navigating the complexities of financial reporting can be a daunting task. One area that requires special attention is the accounting for leases, particularly with the implementation of the Accounting Standards Codification 842 (ASC 842).

Cattle grazing may be a good use of cattle grazing land, but it may not be the only good use. Particularly as nationwide climate goals have driven investment throughout the country in clean electric and carbon offset technologies, cattle graziers may find new market opportunities to make mixed use of cattle grazing land.