How do I setup a Fixed-Bushel Lease?

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.

  1. To determine a Dollar Amount per Acre for the Lease, multiply the Fixed number of Bushels listed in the lease by the Expected Price.
  2. Next, divide the number above by the number of acres in the field = Flat Rate per Acre.
  3. 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.

  1. Take the number of Fixed Bushels in the Land Agreement and divide that by the Total Expected Bushels per Acre for that field.
  2. Multiply that number by 100 to get the Crop Share % for the Landowner.
  3. 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?