Fair rent agreement.

[sumdumguy]

In 1976, uncle retired with $300,000. He bought an annuity that paid him and his wife each $2500/ month until death of last partner. Those interest rates were close to 20%. With the rest of their money, they bought a new modest house in East Regina and a park home in Mesa. They had a worry-free retirement as they both enjoyed good health into their late eighties and Manulife paid that annuity until the surviving spouse was 96. Not too shab, eh?

[blackpowder]

Depends on equity amount going in to retirement. Many here in those days only had 1-3 quarters. I knew many who retired in 78-83 who got a job.
I have dependents for an undetermined amount of time. Not going to get off the merry go round now only to succumb to inflation. I'd like to tho.
Capital gains weren't an issue then either lol.

[Guest]

Now add the rest of the fixed costs.

Yes , insurance , interest , etc.
some are completely oblivious to the costs today

[wrongway]

So the guys going out and buying the highest price land are trying to get the lowest priced rent...they would rather give interest to the farking bankers than pay the Same amount in rent to a neighbour . Try getting your banker to run a grain cart at the end of October to get the last 100 acres done before a foot of snow.and don't be thinking that of course they do because land never depreciates in value...well except for the 30 years between 1982 and 2012. Oh and maybe the years between 1932 and 1962. Too bad every generation has to learn the same frigging lesson over and over again.

[Guest]

Actually I was thinking of interest on an operating loan and necessary machinery to farm ?
This thread was about renting , not buying land

[wmoebis]

Actually I was thinking of interest on an operating loan and necessary machinery to farm ?
This thread was about renting , not buying land

Thanks to Libs you can get $350K interest free and up to 1 M low int loan that should cover most guys operating and equipment payments wouldn't it? Maybe even some land payments until grain or cattle are sold.

[Retired]

Million each for sprayer ,two combines , all the rest , has to be pencilled in somewhere

I realy dont see why its the landlords responsibility to keep the renter in new machinery ,seems to me that is a personal decision. There are fixed costs and variable costs.
How much of that iron is to avoid taxes.

[furrowtickler]

Can they still buy a nice retirement 1/2 ton for $30,000 ffs ??

[furrowtickler]

And no , you can’t farm with old shit anymore , parts are inaccessible, and wreckers are picked clean

[Guest]

And no , you can’t farm with old shit anymore , parts are inaccessible, and wreckers are picked clean ffs . Man some need to wake the *** up

Clueless in Sask

[Rinker]

And no , you can’t farm with old shit anymore , parts are inaccessible, and wreckers are picked clean ffs . Man some need to wake the *** up

I think the point he was trying to make was its not his responsibility for farmers to have the latest and greatest. Not every operation needs X9s to turn a profit.

[TOM4CWB]

Greed is an interesting component of this...

If the land can grow 50bu of Canola... the land owner is reasonably entitled to 23% of gross revenue[at $1100/ac].

$650/ac cost... is now at $540 [33% - 23% = 10% or $110 towards crop production] cost to that farm operator, still over $300/ac net for the grower... how is that unfair when actual monetary investments committed by each party is considered.

Reasonable is Reasonable...

Blessings and Wisdom

[poorboy]

Greed is an interesting component of this...

If the land can grow 50bu of Canola... the land owner is reasonably entitled to 23% of gross revenue[at $1100/ac].

$650/ac cost... is now at $540 [33% - 23% = 10% or $110 towards crop production] cost to that farm operator, still over $300/ac net for the grower... how is that unfair when actual monetary investments committed by each party is considered.

Reasonable is Reasonable...

Blessings and Wisdom

Not sure on your math Tom. 50 bushel canola at $17 less 23% to landowner leaves $650 gross. Fert, Seed, Chemical cost me $340 this year and machinery, fuel, labor, interest, freight costs are hard to peg exactly, as they keep going up, but for this discussion call them $200/ac. Leaves the farmer $110/ac.

Can’t grow canola every year, so most other crops have lower net returns, so farmer averages what $40/ac per year on a 4 year term?

With the higher costs for everything and higher cash outlay, is $40/ac net profit on rented land worth pursuing? I am thinking your 23% landlord share barely works in 50 bushel canola country and that % would have to be lower as you move into lower yielding areas.

[jazz]

Sort of a bit of hypocrisy here. So you want the land lord to be reasonable and supportive especially to young guns who are apparently hard up, but then you bring out 3 X9s for good measure.

Landlords arent stupid. if you can finesse the math that you need new equipment every year with a $100k greenlight to boot and spend $650 per acre to grow canola, well then he can squint and up the rent $20 per acre.

Farmers are their own worst enemies sometimes. BTO fever is gonna kill this biz.

Rent should be based on what you would get if you sold that quarter and stuck it in a GIC or stock or something. The renter should pay a premium off that because he doesnt have the lending risk. He can leave you high and dry in 3 yrs, but not FCC.

So say 5% of $850k is $265 per acre. Renters are getting a steal as far as I am concerned.

[fjlip]

Local latest's offers...$3500/acre or $135 rent cash rent.