Last year corn, soybean and wheat producers saw a good return on their investment and landowners may find it necessary to renegotiate their cash rental agreement to stay competitive.

Tenants and landowners usually determine rent on farm ground without a third-party negotiator. Ordinarily this works well, but problems can arise when landowners expect top dollar for ground that may not be top quality, or when tenants expect outdated lease arrangements to endure in thriving markets.

As commodity prices and profits increase, landowners should raise their cash rent. And as they decrease, producers should negotiate for a lower lease.

Crop share arrangements also should be renegotiated on a regular basis. Landowners typically should seek a new agreement when the price of farmland rises and increases their opportunity cost, and when farming methods improve and reduce the producer's input costs.

As for cash leases, the best advice for both tenants and landowners in the current dynamic ag market is to negotiate a price for this year and then reconsider the agreement next fall.

Tenants should expect an increase that is in line with current commodity prices. For renters who were current in 2007, an increase of 10 to 15 percent would be a conservative estimate of what they can expect for this year.

Landowners and tenants should come to the bargaining table with an open mind and look for a solution that will be fair to both parties.

The University of Nebraska-Lincoln provides a farm lease calculator to help determine a fair arrangement when negotiating agricultural land rental. It is available at www.agecon.unl.edu.

Tom Drudik is a Hall County Extension specialist in agriculture.