Determining Yield Sample Clauses

Determining Yield. It is important to agree ahead of time on the procedure for determining the factors that will be used to calculate the final rent. These factors should be based on information that is available to both parties. Actual yields can be determined by: • Weight tickets, if all the crop is sold or put into commercial storage • Combine yield monitors or weigh wagons • Storage bin capacity When crops stored on the farm are ultimately sold, any variation from the estimated yield can be used to adjust the rent paid for that crop. Estimated yields should be corrected to a standard moisture level, for example, 15 percent moisture for corn. Some flexible leases use the county average yield as estimated by USDA. This avoids the question of how to measure the actual production and removes the influence that above or below average management ability has on yields. However, county average yields are not generally announced until March each year.
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Determining Yield. It is important to agree ahead of time on the procedure for determining the factors that will be used to calculate the final rent. These factors should be based on information that is available to both parties. Actual yields can be determined by: • weight tickets, if all the crop is sold or put into commercial storage • combine yield monitors, or weigh wagons in the fieldstorage bin capacity When crops stored on the farm are ultimately sold, any variation from the estimated yield can be used to adjust the rent for the following year. Estimated yields should be corrected to a standard moisture level, such as 15 percent moisture for corn.
Determining Yield. It is important to agree ahead of time on the proce- dure for determining the factors that will be used to calculate the final rent. These factors should be based on information that is available to both par- ties. Actual yields can be determined by: •weight tickets, if all the crop is sold or put into commercial storage •combine yield monitors or weigh wagons •storage bin capacity When crops stored on the farm are ultimately sold, any variation from the estimated yield can be used to adjust the rent for the following year. Estimated yields should be corrected to a standard moisture level, for example, 15 percent moisture for corn. Determining Price The price used to calculate the final rent payment can be the cash price at a local elevator or processor on a specified date, or an average of prices on several dates. Prices on dates near the time the final rent is paid should be used even though the crop may actually be sold at a different time. An alternative to using a local price is to use a futures contract price, minus a normal basis value for the location of the farm. Example 5 •The closing corn price at the Fredrickstown Coop- erative is $2.20 on October 1, $2.30 on November 1, and $2.43 on Dec. 1. •The actual price used for calculating the rental rate is the average of these three prices, or $2.31 per bushel. If the price chosen is lower than the USDA county loan rate for that commodity, the loan rate can be used instead.

Related to Determining Yield

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