Estimated yields should be corrected to a standard moisture level, for example, 15.5 percent moisture for no. 2 yellow corn. Because the purpose of a flexible lease is to adjust the amount of rent to reflect the income received from crops each year, payments received from participation in government programs should also be considered. If rent is to be calculated as a percentage of gross income, then gross income can include both crop sales and government program payments received or expected. For leases that include selling price in the rent calculation, income received from a loan deficiency payment or through an F. S.A. marketing loan can simply be included by using the local loan rate as the actual market price. The most common type of flexible lease bases the final cash rent on some combination of actual yields and actual prices.
Price is established in the fall at a certain market.
Price determined by the average of local elevator close on the second Monday of December-April. There is a minimum and maximum rent per acre. Only Some flexible-lease agreements specify a base or minimum rent per acre plus a bonus based on the actual yields harvested. Only A few flexible-rent agreements base the final rent on price only. Alternatively, the rent may be defined as a fixed number of bushels.