Wednesday, March 13, 2013

Tuesday, February 19, 2013

February 2013 "About Us" Update

Here's a link to our Update for

February: FPA 1.htm

Thursday, December 17, 2009

Flex Rent

Hello.  This is my first blog.

After realizing that FSA considers only two types of rents, cash and share, I plan to rewrite my Right Rent article.
In practice, flex rents have included various features.  I will define flex rent as being based on a share of the revenue. 

In a flex rent, If the revenue is based on the farm’s actual crop produced, I think FSA will consider it as a share rent. 

In a flex rent, If the lease includes a minimum rent, plus a share of the revenue which is not based on the farm’s actual production, I think FSA will consider it as a cash rent. 

To me, a share lease is based on sharing the contribution margin (revenue minus variable costs), based on the farm’s actual production.
A share-like cash rent includes a minimum cash rent, plus a share of the contribution margin, as calculated using outside the farm gate values, not a farm’s actual values. 
After the parties agree on the amount of a so-called tenant margin (contribution margin minus owner margin, the rent),I think any of the above leases can be updated, almost automatically, by the way I describe in the right rent paper.  However, my 100-0, 50-50, and 0-100 tenant margin cash rent contracts are the easiest to update.
I am not an attorney, tax advisor, or FSA advisor.  Contact your appropriate advisors before using any of this information.

Howard Doster

Friday, December 4, 2009


Please check back often for updates.

Also, visit our website at: