Overview:
Traction Enterprise provides two ways to setup and handle a fixed-bushel lease agreement.
Requirements:
Using the first method, you will need your Expected Price entered in Setup>Crops.
Using the second method, have a Crop Share assigned in Setup>Land Agreements.
Answer
First Method:
The first method allows customers to enter the Lease Rate per Acre using the Expected Price found on the Setup>Crops page.
- To determine a Dollar Amount per Acre for the Lease, multiply the Fixed number of Bushels listed in the lease by the Expected Price.
- Next, divide the number above by the number of acres in the field = Flat Rate per Acre.
- Enter the Flat Rate per Acre underneath Cash Rent on Setup>Land Agreements.
For example, if a Fixed-Bushel Lease involves 50bu/ac and the Expected Price is $4/bu, the Landowner Rate per Acre would be $200. After harvest is complete, you will want to make an Ownership Transfer for the exact amount of bushels involved in the Fixed-Bushel Lease.
Second Method:
The second method involves using the Crop Share features in Traction Enterprise. In this case, you can estimate the Landowner Share using your Expected Yield.
- Take the number of Fixed Bushels in the Land Agreement and divide that by the Total Expected Bushels per Acre for that field.
- Multiply that number by 100 to get the Crop Share % for the Landowner.
- Navigate to Setup>Land Agreements to enter the Crop Share % that for the Landowner.
For example, if your Fixed-Bushel Lease is 50bu/ac and you expect a 200bu/ac yield, the Crop Share % to the Landowner would be 25%.
Related Articles:
How do I setup a flex or bonus lease?
How are land expenses calculated?