2021 lease negotiations during time of uncertainty
Lease negotiations for 2021 will be challenging because of uncertainty in production agriculture, according to Randy Dickhut, senior vice president, with Farmers National Company.
“One big uncertainty are we going to see more financial aid and money from the USDA for producers and others in the supply chain,” he says. “That would make a difference on the upcoming rental market.”
Other uncertainties include how big the 2020 crop will be, how soon the ag economy will recover from COVID-19, and how drought and wind damage will be factored on a regional basis.
Advice he has for growers is to be patient.
“The landowner might not be in a hurry to nail down the rent,” he says. “I think everybody is kind of waiting to see how the crop turns out.”
Dickhut says communication will also be critical as uncertainties in the industry continue.