FairRent in depth

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Product Info Overview System requirements

Support & Training Customer support FairRent updates

• How much can I afford to pay per acre?
• What if yields are 10 percent below historical averages?
• Can cash costs be covered if prices go down?
• What yields will it take to break even at the asking price?
• Which is better, a 60/40, 50/50, or 45/55 share rental arrangement?

FairRent input features

• Revenue projections for each crop in the plan
• Expense projections
• Government program information

FairRent output provides a full analysis of the land rental picture, including cash and share rental analysis, comparisons between differing rental arrangements, and rent sensitivity based on variations in prices and yields.

Cash Rental Analysis

Crop                               Corn       Soybeans
Description                                           

Acres                             40.00          40.00
Expected yield                   150.90 bu.      44.80 bu.  
Expected price                     2.00           4.70
Crop product income              301.80         210.56
Estimated LDP payments               -            8.06
Direct govt payments              19.16          19.16
Estimated CCP                     15.40          15.40
Other income                       7.55           7.72
Gross return                     343.91         260.90

Direct expenses         
  Seed                            35.20          18.99
  Fertilizer                      45.90           3.77
  Chemicals                       27.15          21.84
  Crop insurance                   7.81          10.57
  Drying                           6.26             - 
  Custom hire                      4.05           3.13
  Direct crop labor                0.38           0.34
  Fuel                             9.66           7.76
  Repairs                         21.35          17.09
  Other direct expense             4.05           3.09
  Operating interest               7.23           3.70
  Interest on rent                 2.61           2.63
Total direct expense             171.65          92.91
Overhead expenses       
  Hired labor                      4.15           4.15
  Machinery leases                 4.77           4.77
  Farm insurance                   3.34           3.34
  Utilities                        2.92           2.92
  Machinery interest               5.56           5.56
  Machinery depreciation          16.44          16.44
  Building depreciation            4.08           4.08
  Other overhead expense           6.32           6.32
Total overhead expenses           47.57          47.57
Operator labor & mgt.             27.76          22.85
Total listed costs               246.98         163.33

Remaining for rent                96.93          97.58

Breakeven cash rent across all crops             97.25

Yields and Prices Required To Breakeven at $110.00 Cash Rent

                                            Breakeven     Breakeven              
                               Original     Yields at     Prices at     Breakeven
                               Yields &      Original      Original      Yields &
                                Prices        Prices        Yields        Prices 
                             ----------    ----------    ----------    ----------
Corn                     
  Yield                          150.90        158.42                      157.47
  Price                            2.00                        2.26          2.09
Soybeans                 
  Yield                           44.80         47.03                       46.75
  Price                            4.70                        5.30          4.90

Breakeven cash rent               97.25        110.00        110.00        110.00
Change in yields/prices                          5.0%         12.8%          4.4%