Just a thought about this high priced land rental agreements

[Hopperbin]

As far as I know the only way to get out of a rental agreement would be to be in a bankrupt situation.

[sumdumguy]

Or a disappearing act.

[saskcanfarmer]

I know what you mean Furrow Tickler. I have been on the sidelines for the last couple years in the same area. Ridiculous prices for rent! How about the cleaver field behind the hamlin elevators or the wild oat patch of peas across the highway from the water drillers. Both operations who have expanded and paid the big bucks to do so.

[hedgehog]

after ten yrs of highest bidder gets it, farms round here start to look decidedly ragged.
no one does the wild oats, fixes burst drains, keeps fences tight.
only minimal p and k applied if any, and no lime.
owner gains cash in short term, but loses big long term.
but then accountants dont understand soil husbandry.

[BTOfarmallll]

BTO is Late, sorry fer the Wait. So I should er shouldn't renta pilea Land this Fall fer $70-$125 an acre??? Farming is Business, Not here to Make Friends, Chisel & Cheat The Sob's. Sit on the Sidelines Hutts & Corpies gon geter'all. Will look after Manitoba where it matters, but the resta yous are on yer own. Picked up another 2700 acres without raising Rent $0.01, Farming Practices got em' Burnt. f*** it, Theys tell me Numbers Never Lie, Renter'all fer Top Dollar, Everything Profit. Wake up in The Morning, Take a Piss & Wash my Hands, Take a Knee & Thank The Man, Now get Back to The Money!!!!!!!!!!!!!

[ASRG]

Three methods are used in my area just east of Red Deer Alberta.
(1) staight cash rent. On good clean land around $80/acre. Paid upfront.
(2)20-22 bu. of barley, no matter what is grown. Priced at an agreed date after harvest and paid.
(3) Crop share-one third of whatever is grown with the land owner paying one third of fertilizer and chemicals. Paid on sale.

I rent land to a long term tenant on the crop share deal. I provide all grain storage and will help with plowing snow etc. He makes all planting, input, and marketing decisions. It has worked well for both of us. With a good crop rotation I almost always exceed the cash rent and the barley deal.
Incidently if some might think $80/acre is excessive, recently a farmer proved he averaged $585/acre in gross sales over a 5 year period, in a surface rights board compensation hearing. This was basically a canola, HRS, barley rotation. So an $80 cash rent is about 14% of gross. This leaves 86% or in this case $505 to pay for all costs and profits to the tenant. Looks profitable to me?

[ASRG]

The farmer who was awarded $585 was situated at Trochu Alberta.

[saskcanfarmer]

ASRG - Just wondering how you actually factor risk into your comments? Does the fact that in a Canola/Wheat rotation a farmer is risking ~200$ an acre mean nothing? Should the landlord get 25% of the profit while taking very little to no risk? I am not playing the farmer's side I am just wondering what answers people would give to these questions.

[furrowtickler]

If your actualy paying 1/3 the expense with no complaining pissing or moaning - it sounds like a fair deal. BTW would your attitude change if all/most land was flooded out for two-three years in a row or have you ever had three-four years of a drought in a row with less than 25% ave yeilds? Just woundering how things roll when that happens - and it does happen. Its all good when crop prices are good and crops are steady as has been the case in Trochoo or whatever for the past five years. Reality will hit sooner or later. Always does, always will - ask 80% of the rest of Western Canada.

[ASRG]

Our arrangement has been going on for close to twenty years now.
I have the option of taking part in crop insurance but don't. He does.
2002 was a dry year with resulting poor yields and I didn't do that great, but generally this is a sure crop area. Never have had much hail.
I bale the straw I want and in the past I have bought whatever barley I might need right in the bin in the yard.
This has worked for both of us because we treat each other fairly. We have never had a written contract. It helps that we are family.