2010 Land Rent

[Hopperbin]

Actually have neighbors that do that. Determine value of crop then pay the percentage as cash. My worry would be that the crop share cost if paid properly would be higher than most cash rent agreements. May be a different story in your area. Hope you can both have a vodka over the deal. I'm sticking to the agristabilty is best to pay the cash, paying the percent in cash instead of crop helps you there, never know when your going to need it.

[cottonpicken]

Mbratrud-all my cash rents are payed out in this manner,although when explained to the landlord i guarantee a base line and pay above it when i make money based on a percent of gross.

[mbratrud]

This is my intention Base of $30 then 18% of the gross acre to determine the additional. The benefit to me is I dont get stuck with a $50 rent (going rate in my area) on a shitty year. The saw off is I could pay higher in really good years. over the long run probably averages out the same, just nervous after a couple good years to get locked into a high cash rent. CP what kind of base are you running? if you don't mind me asking...

[cottonpicken]

acres farmed x gross income - inputs/price of weed

[mbratrud]

LOL Ok I will look at that

[dirtgirl]

Wow - you guys are complicated! Our rental agreements were signed up last winter for the crop years 2010 and 2011. $30/acre paid in the spring of each year. Simple.

[mbratrud]

Dirt girl. We could do that to but the number would be at least 50 bucks. The point of an agreement like this is to protect ourselves in the event of a disaster. If I could sign up $30 cash rent in my area I would do it in a heart beat.

[poorboy]

In a competitive area the landowner would be a sucker to just take a cash offer. Good land and good farmers should always put more money in a landowners pocket with crop share or percent of gross payment. I would like to pay cash rent, but no land comes up for rent, and most of what comes up for rent is on some type of share basis.

20-25% of the gross is the going rate here, and that would be the same a $40-50/acre cash rent for similar land.

The way the gross works here is that it is paid on each load of grain as it is sold. So it usually makes the landlord more money than a straight cash rent, but revenue canada lets the landlords have full farm status as they are taking risk. Because the % of gross is paid at time of sale the farmer does not have to come up with cash rent up front, helps spread the risk.

[ado089]

20% of gross is pretty rich on a 45bu canola crop at 9buck that's 81 an acre. Even on a 27bu/ac at 6.50 that's 35/ac and you'd be squeaking when you walk because things would be so tight. 12.5-15 would probably work for me.