Farmland Cash Rent Auctions in Iowa
What is a Cash Rent Auction for Farmland?
The idea of a cash rent auction might be somewhat foreign to some people. They confuse it with selling their farm. It seems odd that you are using an auction to sell something but it is not transferring ownership. The truth is, cash rent auctions for farmland are easily the best way to find the best tenant at the highest rent price. Using cash rent auctions to set the price of your rental contract can completely change the return on investment. Renters will compete to rent your farm and therefore get you a better rental rate.
- Cash rent auctions are selling the rental contract only. You are selling the right to farm it.
- Cash rent auctions are a known rental agreement offered to the public for bidding.
- The owner of the farm sets the terms and conditions of the contract.
- You can control absolutely everything in the rental agreement from fertilizer application to the payment date.
- Rental agreements can be as long as you desire them to be. We have sold agreements ranging from 1 year to 5 years. 3 years seems to be the most desirable for renters.
Successful Cash Rent Auction Strategy
How can you get the best rent for your farm? Using an auction as your strategy to get the best possible rent for your farm will be financially rewarding. Many of our clients that have used our online bidding system to set the rent for their farm have typically experienced an additional $100 per acre over their previous rental agreements. All bidding for our cash rent auctions occurs online at bid.dreamdirt.com
Cash Rent Auction Step by Step
- The process starts with collecting information about your farm and discussing your contract details.
- This is done to create the lease agreement ahead of time as it will become the actual item the bidders are bidding on.
- Once the agreement is set and we have the final contract we will build an online auction.
- Advertising is localized to an area about 20 miles around the farm. This will produce the best most highly motivated bidders.
- Advertising typically includes local newspapers, paid online advertising, notices to our current audiences, signs on the property, and radio advertising.
- Once advertising is complete the online bidding will end. We will be in constant communication with you on auction day.
- Once the final bid has been placed the contract will be signed by you and the leasee.
- All payments will follow the contract agreement.
The Benefits of a Farmland Cash Rent Auction
- Cash rent auctions beat the Iowa State University county farmland rental averages by 30 – 40% consistently.
- Create competition not present in private negotiations.
- Saves you the time of searching for a renter.
- Insulate you from the discomfort of negotiations.
- Allows you to set the terms of the lease.
- Ensure you do not get taken advantage of.
Testimonial From Cash Rent Auction Client
I was shocked by the results of my cash rent auction. It was a great experience. I was able to get $100 per acre more than I expected to get! I am extremely happy with DreamDirt, they made finding a farm renter simple and painless.
How to Have A Cash Rent Auction
If you are interested in having a cash rent auction start here. Contact us at 641-423-6400 or email [email protected] and we’ll give you plenty of opportunities to ask questions first. You can find lots of Iowa Farmland Information and Frequently Asked Questions about farmland auctions on our website. You can also fill out this form and we will contact you right away.