Success StoryLand Values and Leasing



Land Values and Leasing

Author: David Appelman

Planning Unit: Bracken County CES

Major Program: Financial Education - General

Plan of Work: Measuring the Agriculture Business

Outcome: Long-Term Outcome

For many years, a land owner and widow in Bracken County leased her land to a family friend.  This lease was a handshake deal with no explanation of the values placed on the land or what it would be used for.  So after many years it was time for a change.

The Bracken County Extension Service was approached to come up with a plan to guide the family through the lease process with guidelines to seek out a qualified producer that would care for their land and potentially serve as a long term lease arrangement.  

First the farm was evaluated for crop, hay and pasture acres.  This was through the FSA office and then values from the Kentucky ANR Agent Land Value and Cash Rent Survey were used to calculate the total values for each of the separate acreages.  Next, controls were suggested to provide care for the land including stocking rate for pasture, limiting tillage on land with emphasis on No-till only for crops, fence maintenance and mowing for pastures, and fertility according to soil test recommendations.  Also, land use limitations was recommended for no motorized sport vehicles, or horse recreation.  

Additionally, it was recommended that any lime applications be prorated for the producer and if the lease was only for one year, a portion of the cost would be reimbursed for the lime. 

With the land value calculations, the total lease was more than double the amount she was receiving and a potential long term lease arrangement was found to manage the farm.  






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