Cash Rental Agreements
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While the current 2025 agricultural crop season is still in full swing; farmers and landowners are thinking about renewing or making new rental agreements. In Ohio, about 39% of farmland is leased or rented. About 28% of all Ohio farmers rent exclusively and own no farmland themselves. About 13 Midwestern universities have developed a program called AgLease 101 offering descriptions and advantages and disadvantage to landowners and renters (tenants) of various rental arrangements. The most common rental agreements are cash rent. For the Landowner, the benefits include they do not need to provide much input to the farming operation. The landowner gets a cash payment that does not trigger landowner self-employment tax and does not reduce social security benefits at retirement. With less input, generally there is less disagreements between parties. The landowner does not need to worry about pricing the crop or yields or how to divide and market crops. The renter or tenant takes car...