September 1 is the deadline for oral and written agreements on cash rent or lease arrangements and farm management experts anticipate a large amount of renegotiation for 2017. Rex Wilcox, Farm Business Management Specialist with Stalcup Ag in Storm Lake, Iowa, says after three years of losses, operators need cash rent concessions to shrink their 2017 operating costs. That’s why he expects a significant amount of new agreements will be struck.

Wilcox says some landowners have been adjusting rents downward the last few years with the lower commodity prices. However, with a big crop on tap and around $ 3.00 cash corn they may need to lower rents again for 2017.

He says there were many multi year leases that will expiring this year, which may mean some of this ground will be seeing new renters. He’s also hearing of some operators trying to break long term arrangements.

Wilcox expects farmers to work hard to re-negotiate because if they lose that rental land they may never get it back. He says if possible, they might want to delay agreements to see how the crop turns out or if there is any rebound in grain prices this winter.