-land investment involves questions of both economic profitability and financial feasibility.
-renting land is an alternative to owning.
-the two most common forms of rental agreements are the cash lease and share rent.
-with a share lease,the landowner agrees to share in some of the direct growing costs and receives a share of the production.
-if costs are not shared in the same proportion as production,optimal levels of fertilizer and other inputs may not be applied.
-with a cash lease,the landowner receives a fixed cash payment,does not pay foe any direct production costs, and does not receive any production.
-various forms of flexible cash rents are available but not widely used.
-estimating and comparing the costs and returns of both the landowner and the tenant, and knowing current market rental condition,provide both parties a good base from which to negotiate land rental rates.
-the typical lease specifies the payment level and also includes several clauses describing expectations of the landowner and the tenant concerning treatment of land, ending agreement. and other conditions.