Land Rent is the insanity coming to an end?

[SASKFARMER3]

Land is land its a real asset. Not like the paper and a fricking house in USA or any Canadian city.
Land is land and yes some times you make way more from flipping it than farming it. But also when you by it cheap can pay for it in one year then its gravy till the grave.

[mbratrud]

Agree SF3 unfortunatly would have to be growing something illegal to pay for it in 1 year down here these days.

Freewheat, I follow. I am budgeting 10.50 for Canola on my farm. I crunch numbers the same as Newguy, and tend to try be on the conservative side.

[freewheat]

If I had not done that contract I'd be
budgeting 9.50-10.50 as well.

[ColevilleH2S]

I can contract October 2012 delivery Canola for $11.35/bus. at the local elevator. I'm temped to book about 25-33% of next years production at that price because I can't see the EU clusterf### and Chinese slowdown resolving themselves before then.

Land is nice to own, too bad it never comes up for sale around here.

[farmaholic]

Not to worry folks. If the NDP win the next election they will impose rent control for housing. If you talk nice to them they may also introduce rent control for Ag land.

[rockpile]

I'll post a comment from the 'dark side'. I retired
from active farming in 04 and rented my land to a
dear friend and neighbour. He offered me premium
rental at the time of just short of $40 a seeded ac.
if I would agree to a 4 year lease and first right of
refusal should I decide to sell. In 08 we renewed on
the same terms. 2012 requires a new lease to be
signed (hopefully for another 4 yr period). What
would you do at this time? I await some responses
and then I'll let you know what I'm going to do.
Rockpile

[Hopperbin]

You most likely are due for an increase in rent. How much should be dependant on what others are paying, past success of crops of your renter is he wore down as farmers are in my area?, is he keeping the land in top shape?, what does the future look like?
What do you think is fare? Lots of things to think about.

[bucket]

As a renter, if the guy has been good to the farm and kept it in good shape, all things considered with the rain we have had, what's wrong with giving him the security of knowing he is farming it.

When interest rise he should be able to purchase the land. However, if I was you and he has been a good renter like it sounds, I would be more inclined to become the banker and finance him. You could still hold title and get rid of taxes.

Many farms were built with this arrangement in the 60s and 70s.

Good deal for both of you.

[rockpile]

The crops have been outstanding! They've had nothing
but huge returns. But I'm not interested in selling, so
just dealing on rent. Tell you later my terms.

[Hopperbin]

With outstanding crops not crops still out standing ,I am guessing your rent is going from 40 to 60. Do you have offers, actually most farmers around here will not but in on someone else's rent. I actually had a nieghbour offer 30 percent more rent one time but pulled his offer when he found out I was still farming it plus it was summerfallowed at the time. Perhaps I am going to get hit this year and believe I would drop it instead of matching. Just been through a divorce so really wondering why I am busting my ass for what? I am intent on enjoying my time left not in taking on or keeping my current work load. Well that is just myself.
Certainly there is money to be made in farming these days and don't need to be big to pay higher rent. As a farmer seeing himself also rent out some day I have no problem with taking some higher rent. Mind you keep in mind the fertilizer bill this year will still dwarf your rent along with machinery payments, small break on chemical, fuel is up, does he pay your land taxes, seems to be part of rent issue these days, maybe he can pay your land taxes.