$120 acre rent

[jazz]

The competition for land is fierce around here. I have a realtor who called me out of the blue looking for dirt for clients. I said I want bank interest on the valuation. That equates to $120 an acre. Said no problem.

Would you walk for that kind of rent?

[blackpowder]

Some people paying it here.
Have a little myself at 25% which can at times exceed that.
If all acres at that I'd be done yup.

[sumdumguy]

Geez, we bought our first section for $100/ acre. 👍

[makar]

The competition for land is fierce around here. I have a realtor who called me out of the blue looking for dirt for clients. I said I want bank interest on the valuation. That equates to $120 an acre. Said no problem.

Would you walk for that kind of rent?

No brainer, I get less than half that and it's great.

[fjlip]

Dad paid $75/ acre in 1972...most I paid was $1000/acre. $120 net return is almost what good operators get. Biggest problem will be income tax!

[STR1]

The competition for land is fierce around here. I have a realtor who called me out of the blue looking for dirt for clients. I said I want bank interest on the valuation. That equates to $120 an acre. Said no problem.

Would you walk for that kind of rent?

All depends if you enjoy it or not? If you’re ready be done it would a good deal to rent it out and live a different life.
However my thought would be if you have friends or neighbours that might be willing to match the realtors offer that would be the way to go. If its a realtor looking for a client you can be assured (in your area)that your land will become part of a 30,000 - 150,000 acre farm and your land will only be a land location to them. IMO

[helmsdale]

In laws neighborhood south of acadia valley ab, is probably some of the best dirt in the province if not western canada. Its feet and feet of vertisolic clay! Tremendous water holding capacity, and nearly flat but still well drained. Young guys have done WELL the last decade growing canola, lentils, chicks, and durum.

With that in mind, and the last 10 years being the wettest in settled history, land values have rocketed up, and along with it rental values. They're pushing double what I'm paying a mere 30 miles to the west. The hunger to expand various empires, has some of them openly saying in public they'd pay $70+ if only someone would let them...

This year there are lentils running sub 15, canola sub 15, and durum in mid to high single digits. None of those pay expenses, and durum at $7.50(provided the shriveled up shit even grades a #1) wouldn't even cover going rate for rent let alone fertilizer, paint, etc!

I suppose spinning the revolver and pulling the trigger is exciting, but eventually that bullet is going to chamber...

[Oliver88]

The competition for land is fierce around here. I have a realtor who called me out of the blue looking for dirt for clients. I said I want bank interest on the valuation. That equates to $120 an acre. Said no problem.

Would you walk for that kind of rent?

What is it selling for?

[jazz]

What is it selling for?

Some appraised at $630k, some at $590k. My bank loan is 3.25% interest.

A person should at least get what he pays the bank in interest imho.

Some guys are expanding acres and their goal is total acres, not margin. Its become unhinged but we are getting good yields here, even this yr.

[biglentil]

The land has not gone up in value the dollar has lost purchasing power.

[farmaholic]

People who rent land for $120/acre must grow alot better crops than me. Even around here I wouldn't want to pay what some guys are. I'm not working for nothing or hoping to average a profit over three to five year lease terms.

Besides I'm both lazy and cheap.

I would rather struggle trying to pay for land than rent a bunch, at least in the end you own it....hopefully.

Investors can shove it. Some people are making investor's mortgage payments....serfdom at it's finest.

[oldjim]

Jazz - $120 rent is certainly attractive but I've been hearing lentil yields close to 40 this year around here. Let's use 36 bu/ac of red lentils (2,160 lbs) at 25 cents per pound for #1 reds (Stat Pub average) grosses $540/acre. Using the classic one third crop share would be $180/acre by comparison.

Last year a friend of mine who crop shares his land ended up with $160/acre.

My concern with $120 cash would be: are you going to actually get paid, or will the fall half of the rent cheque go missing. High reward carries high risk.

[makar]

I get my rent up front

[ajl]

My concern with $120 cash would be: are you going to actually get paid, or will the fall half of the rent cheque go missing. High reward carries high risk.

That how it goes around here. One greedy old buzzard has some land for sale for the past three years. This year it did not get seeded. Renter still owes from a couple years ago. Just can't get his head around the fact that it ain't worth what he is asking. Honest guys can't compete.

[SASKFARMER]

Yes, and the check has to be certified and upfront. Not a problem.