If he is a good neighbor and pays on time and doesn't jack you around trying to change stuff every time crop prices change and your not ready to sell it to him renew the lease reflecting today's prices compared to 2008, oh wait they were higher back then. So keep rent same.
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Land Rent is the insanity coming to an end?
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Okay, here is the deal. Hopper, I feel for you. I have
a good friend who had the same thing happen to
him. Well over a year ago. It's still a shit show, even
though she got an exceptional settlement. But the
relatives and lawyer got involved and it seems like
they're out to destroy this guy. And she started the
whole thing! I hope you have family and a network
of friends to pull you through these times.
On the rent. They treat the land like it was their
own. They were awesome neighbours there to help
me whenever I needed it, like when I caught
pneumonia and couldn't finish harvest. I haven't
considered the tax angle, which I pay, but maybe I
should give it some thought. The bottom line is that
I'm willing to offer the same terms and conditions
that have been in place for the past 8 years. I have
other sources of income and have more of a tax
issue than income, so why be greedy, right? I firmly
believe that relationships are much rewarding than
$'s. Btw, there are others including Hutts willing to
pay way more, but I only take what I need. And
guess what - I'm happy!!!
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Very comendable rockpile. Hats off to you for seeing the value in a trusted renter. Have a landlord myself that thinks in the same terms as yourself.
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In my area (central Alberta) most of the rental agreements are cash or based on 20 bu/acre of feed barley.
I am one of the few who still have a share deal with my renter and we both feel it works for us (over 20 years now). The deal is I get 1/3 of the crop(whatever it is) and I pay 1/3 of spray and fertilizer. He makes all decisions for inputs, crop, and marketing. I provide and maintain steel grainbins and occasionally put in some time helping out (not paid and not part of the deal).
Generally speaking it works out to that $80/acre average over the crop rotation (3 yr barley/CPS wheat 1 year canola).
I might do better on a cash rent(high production area)....but this works for me.
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