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Land Values and Leases: Information You Need to Make Good Decisions

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By Carol Engle, K-State Research and Extension Frontier District

 

GARNETT, Kan. — The Frontier Extension District will host a public meeting on Jan. 8, 2025, to discuss current land values and the components of good written lease agreements. The meeting will be held at the Garnett Community Building, North Lake Road in Garnett, starting with a meal at 5:30 p.m. RSVPs are requested and can be made with the Frontier Extension District Garnett office by calling 785-448-6826 or emailing Ryan Schaub at [email protected] by Monday, Jan. 6.

“Rental rates are by far some of the most popular questions that come into the office,” said Ryan Schaub, Frontier District crop production and farm management agent. “While we do have some resources to help determine the counties’ averages, we also try to share a range of prices that we hear are being used in new agreements. Many times, these new numbers can be quite different from the other resources we have,” said Schaub. “I typically try to explain the reasoning for the differences in numbers before going on to say that I tend to only do business with people I trust and that entering into rental agreements is doing business with those people.”

The meeting will start with a joint presentation by K-State economists Robin Reid and Megan Hughes. One of Reid’s primary research projects has been land values in the state of Kansas. She breaks out property sales on parcels of ag land within the state of Kansas from 2019 through 2024 to give producers an in-depth look at how much they could expect to pay for or to receive from the sale of some of their agricultural properties. Hughes will join Reid in this discussion, but she will focus more on the rental side of things during which she will share rental rates and discuss the details of negotiating a lease.

“While these two topics may not sound like they go together,” said Schaub, “I believe landowners always have to think about adjusting rental rates as land prices increase and they consider the opportunity cost of holding onto that property.”

To wrap up the evening, Roger McEowen, professor of agricultural law and taxation at Washburn University School of Law, will talk about components of a written lease agreement.

“The main take-home point will be to understand what all needs to be included in lease agreements to help ensure that each party knows what to expect from the other,” said Schaub.

McEowen focuses on legal and tax issues that agricultural producers, agricultural businesses and rural landowners face. In addition to the courses he is responsible for at Washburn, he also teaches an undergraduate agricultural law course at Kansas State University.

“If you have questions in any of these areas, this will be an excellent time to ask Roger and get answers from him,” Schaub said.

Schaub reminds landowners that all changes in lease agreements must be made at least 30 days prior to March 1 to be effective in the coming year.

Again, the meeting will be held on January 8 at the Garnett Community Building with the meal beginning at 5:30 p.m.; the event is expected to wrap up around 8:00 p.m. Ask questions or RSVP at 785-448-6826 or at [email protected].

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