Fair return

[Horse]

Always lots of talk about how rents are too high, so what is a fair return for renter,10/20/25%,a 50 bu canola crop at $11/550 x20% =110 too much ??? 60 bu wheat@650=390x20%=78. Lots seem to think they should have land for nothing or a 3% return for value to landlord, fair????

[tweety]

The maximum amount anyone is willing to pay, is fair.

[vvalk]

Always lots of talk about how rents are too high, so what is a fair return for renter,10/20/25%,a 50 bu canola crop at $11/550 x20% =110 too much ??? 60 bu wheat@650=390x20%=78. Lots seem to think they should have land for nothing or a 3% return for value to landlord, fair????

How does canola 25 bus x $11 work?

[Horse]

How does canola 25 bus x $11 work?

About the same as 60@$14

[biglentil]

Lots of landlords are about to get a sob storry. "Only 2 inches of rain blah blah blah." Followed by a request by the tenant to renegotiate the contract. Whats the landlord to do? Sue for a breach of contract?

[farmaholic]

About the same as 60@$14

Huh??

[farmaholic]

I've never seen Landlords hold a gun to the heads of tennants. You wanted it, now pay up. WTF...do you HOPE to average out over a three or five year term? Should every crop turn a profit every year? Whose taking the biggest risk? The landlord deserves a "fair" return but more than the tennant? Again, whose taking the biggest risk? If you want to give margin away to satisfy your ego...go ahead. If you can't stand to see your neighbors get it or have one more acre than yourself....

In this part of the country, the amount of land you farm can depend on who you're hanging around with and who your relatives are. High testosterone types...competitive at all costs. In some cases bigger balls than brains.

To each their own! I won't begrudge your success or mourn your failure!

[farmaholic]

Some dirt here traded for about $320K, 3% on that "investment"(loosely termed) on 150 acres is about $64/ac. Each additional half percent on the $320K initial investment adds about ten bucks to the per acre rent.

This all tells me "Investors" are dumping cash into farmland. ..because the rental income would barely pay the interest on a loan (without a huge down payment) let alone any principle payments.

Yup...give-em as much as you can so you can farm it...but never own it!

[furrowtickler]

Horse what fukin planet are you on ???

[furrowtickler]

What about guys getting 30 bus wheat at $7 ?
Or 25 bus peas at $8
Or 25 bus canola at today's price ? Not some fukin fairy tail B/S

[furrowtickler]

Why is it such a fukin sin for a farmer to get lucky once in 20 years to get a good crop and a good price at reasonable rents ?
If times are that good , go back and farm it yourself and take that 100% of the risk back and pray you don't get flooded out , hail out , frosted out , driughtef out , get no bugs or have to spend a fortune on crop disease . *** some landlords and the entire Ag industry needs to wake the *** up to the down side that faces the actual farmers on a day to day basis . And no insurance is going to cover all that , or even part of it .

[furrowtickler]

75% of the landlords are renting out their land now for a reason , because they could not even make when they could .... sorry that's a fact

[fjlip]

How about too old to keep farming, but rather not sell.

[farmaholic]

How about too old to keep farming, but rather not sell.

.....and now to talk out of the other side of my mouth. These types I have more respect for and feel because they "were in the trenches" their whole life and for some it is their only source of retirement income I feel they definitely deserve a fair return. As you said I guess the land could always be sold but if you don't want to.... Now I'm less sympathetic towards "absentee landlords who inherited their property but didn't chose farming as a career. Open season on "investors"!!!!.....you can choose to make it worth their while or not!

[WiltonRanch]

It didn't seem that long ago people couldn't rent out land for more than taxes. Things come full circle. Rents starting to come up here. Wasn't long ago nobody wanted this hilly, rocky, sloughy clay. Now landlords hear what Billy is getting across the way on the good ground and figures they're entitled to more. Okay fine but now when the only thing half this poorer ground can produce profit at higher rent is canola you know the result. When club root strikes too ****ing bad. Nobody wants it except for pasture then.