The UA Cooperative Extension Service recently released their 2012 crop budgets. These crop budgets provide a useful tool for operators and landowners in planning and analyzing equitable lease arrangements. The UA also releases the budgets in Excel files that allow a user to change parameters for customization.
Glaub Farm Management uses the UA crop budgets as the starting point for our annual budgets that we provide to our management clients. We also use the budgets to analyze lease terms. Margins are tight for both operators and landowners. Finding equitable lease structures built upon the resources provided by each party will create a win-win for both.
Using the Excel files gives both the operator and landowner an accurate starting point to begin lease negotiations. Recently we had a new operator bring in his 2012 budgets for rice and soybeans. His budgeted costs were very close to the UA crop budgets.
I would like to thank the UA Cooperative Extension Service for providing valuable information like the annual crop budgets to everyone involved in agriculture.
Here are the links to the PDF and the Excel Files.
By Jeffrey Hignight, Farm Manager and Associate Broker at Glaub Farm Management. Serving Landowners in Arkansas, Mississippi, Missouri, and Tennessee.