I hope everyone weathered last week’s storm without too much stress. Today I have three things I want to share with you. First, 4-H members don’t forget that career portfolio’s are due next Thursday, November 20. Remember if you need help, don’t wait until the last minute. Give our office a call and Jody will be glad to answer your questions.
The second thing is if any of you are looking for an excuse to go to North Platte next week, you might be interested in the West Central Cattleman’s Day and Trade Show that’s going on next Monday, November 17. It is going to start at about 8:30 at the Lincoln County Fairgrounds there in North Platte. It looks like they have a full day planned. A representative from Cargill will talk about industry needs and outlook from a packer’s perspective. There will be a few feedlot related talks, and a bunch of talks related to the cow/calf side of the industry. My note from Randy, the new extension educator down there, says that it will be free if you preregister by this Wednesday, otherwise plan to pay $10. You can call 308-532-2683 to preregister.
Finally, I want to talk just a little bit about leasing. A couple of weeks ago, Dr. Bruce Johnson, had an article in Cornhusker Economics titled “Leasing Decisions for the Volatile Year Ahead.” Every year Dr. Johnson publishes an overview of the Nebraska Ag real estate market that includes lease rate information that he gets from a statewide survey that he conducts every year.
In the Cornhusker Economics article, he points out four things that might help when trying to decide what is fair and reasonable to both parties. First, he says that “today’s level of economic risk and uncertainty trumps everything else. Both tenant and landowner need to heed the reality that risk exposure going into 2009 is greater than ever before.” In the case of cash leasing, it’s the tenant that carries the bulk of the annual risk.
He goes on to say that, landowners hoping for higher cash rents in 2009 must be willing to take on their share of the risk. This can be accomplished by entering into a flexible cash lease. His third main point is that “during volatile times, the crop-share lease tends to be the most far and equitable of the different cropland leasing arrangements.” Nebraska farmers have moved away from crop share, in favor of cash rent, but Dr. Johnson says that “as we try to ride out this global economic storm, it may be time for both parties to reconsider crop share leasing.”
Dr. Johnson’s final point is “good relationships matter.” He says that “it should go without saying that economic decisions should be based on mutual trust, forthrightness and integrity. It is important that everyone, landowners and tenants, strive for one common cause, a fair and equitable leasing arrangement with the long-run sustainability of the land and the community in mind.”
Contact the extension office at 402-376-1850 for more information on any of the things I’ve covered. Take time to pause and remember tomorrow on Veterans Day.
