During this time of year there are many inquiries into how much rent is reasonable for a given parcel of agricultural land. Unfortunately, there is no magic number.

Renting land is like renting anything else. Each situation is unique, therefore the rental price is unique. Both the landlord and tenant want to be fair and have an agreement that is beneficial to both parties.

There are numerous questions that are raised when determining to rent or rent out a piece of land, but some of the more general ones listed below may aid in that decision process.

Location, soil type and size are probably the three biggest questions. Land located near proximity to other agricultural land will be of higher rental value than land that is isolated and difficult to farm. Knowing whether the soil type is Class I (prime for crops and pasture) or Class VI (very difficult to use for crop production) will determine if more or less rent should be agreed upon. It is also important to understand what the nutrient levels are for the soil in question and who will be responsible for maintaining those levels throughout the lease term.

The size of the acreage also affects rental price. It is difficult to justify high rental rates for five acres compared to a 50-acre lot. Larger-sized parcels of fertile soil near other agricultural land will generally bring a higher rent value than small, less fertile, isolated parcels.

How was and will the land be used? This question is usually more pertinent to the renter than the landlord, but it is helpful if both parties are on the same page.

The basic split in rental agreements would be land used for crop production (example: corn, soybean, wheat) and land used for grass hay or pasture. Generally, crop production land will bring slightly higher rental values than grass or pasture land.

One of the largest questions and probably the most variable cost to land rental agreements are real estate taxes. Rental prices, depending on the answers to the ideas above, may cover most of the tax costs for that given acreage. Remember this is only the acreage actually being farmed. Many times, farm owners think the cropland rental should cover the taxes on the entire parcel. This includes buildings and non-farmed areas. In most cases, that is not fair to the tenant. Generally, a rate of $10 to $20 an acre will cover the taxes for cropland. Other costs that may need to be considered would be any buildings or facilities (and, if so, who is responsible for maintenance), soil tiling, conservation practices and others.

For any other costs, it is important to know and agree upon who will be responsible for those costs, and adjust the rental agreement accordingly.

What is the structure of the agreement? One of the final, but still important questions to ask relates to the structure of the rental agreement. It is important that both parties understand and agree upon payment structure, length of agreement, and any other responsibilities (such as who is responsible for building maintenance, if it's needed).

Most rental agreements are year-long contracts, however, length of contract can be longer. The payment structure may also be a lump-sum payment, or even a cost-share of product produced between the landlord and renter. Regardless of the payment of length of agreement, it never hurts to have the agreed upon items in writing. That way, both parties know what is expected of them, even a year or two down the road.

These items are just a few of the numerous questions that may arise while establishing a land rental agreement. It is important that the rental agreement covers length of agreement, cost and payment type, and responsibilities for both parties (example: building and repair, nutrient testing, etc.).

Since each land rental situation is unique, there are no hard dollar values available, but by asking the right questions, both parties may arrive at a mutually acceptable agreement that will benefit both the land owner and renter.

Luke Fritz is executive director of the Butler County Farm Service Agency.