Successful Land Rent Negotiations are More than Bidding H ighest

1. Successful Land Rent Negotiations are More than Bidding Highest Dwight Aakre, Andy Swenson, Willie Huot Educational Meetings Nov 2012 – March 2013 Objective Provide information to land owners and operators that helps them improve their abilities to negotiate rental agreements that meet the needs of both parties in an environment of rapidly raising land costs North Dakota Counties Introduction Rising land costs in recent years have made it increasingly for land owners and operators to negotiate rental leases that satisfy all parties involved. Inquiries from both owners and operators for information on alternative lease arrangements as well as how to strengthen relationships have increased dramatically for NDSU Extension staff throughout the state. Topics CoveredDuring Workshops • Historical Land Prices • Factors Affecting Land Values • What is Land Worth? • Understanding Capitalization Rates • What is a fair Cash Rent Value? • Fixed Cash Rent Methods • Pros & Cons of Flexible Cash Rent Leases • Establishing Base Yields and Prices • Flexing for Price Only • Flexing for Yields Only • Flexing for Both Price & Yields • Important Questions to Ask • Improving Land Lord/Tenant Relationships • Use of resume’s and Newsletters Methods Specialists and field staff worked together to plan, promote and deliver twenty two individual half day workshops throughout the state. Materials were presented by power points, turning point technologies, handouts, showcasing web sites, question & answer periods. Results • 22 workshop held • 729 people attended • Approximately 45 % operators, 55% owners