Land rents?

[SASKFARMER3]

Just back from a meeting in southern Sask and heard about a 2400 acre rental agreement near moose jaw that is getting some attention.
The price is 54.37 an acre for three years.
Our rent in our area east of Regina is $30.00 an acre. North of us its $20.00. Just back tonight from Tisdale area and its 25-30.

[cowman]

Hard to find land around Red Deer Alberta for less than $60/acre.
One formula they used to use around here(last year even) was 23 bu. barley! Don't know if that offer is still out there or not!

[charliep]

How many rental agreements are based on a flexible cash rent similar to what cowman is describing with barley? Is a good way to allow landlords to share in higher prices during good times and share some of the pain during lower prices times.

Similar question on crop share agreements with a portion of specified expenses shared by landlord (eg. 1/3 landlord and 2/3 renter with fertilizer, herbicides, other agreed expenses shared with same formula)?

[carebear300]

I know my one neighbour cash rented canola ground last year for four bushels of canola per seeded acre. Only one I had heard of.

[carebear300]

Sorry everybody only gave half of story, the part that I knew till yesterday. Now you will get the rest of the story. This land was rented for the production of canola only last year. In the end it was farmed on a one quarter crop share to landlord with a maximum of four bushels of canola per seeded acre. The landlord is responsible for only the taxes. This year this same individual has rented land for a maximum of three bushels per acre. I kind of like the sounds of this arrangement.

[cowman]

Charlie: That 23bu barley thing was paid no matter what the renter grew. So it didn't matter if he grew wheat or canola, everything was based on barley, priced on the local feed market. Barley is the dominant crop in this area.
My cousin and I have the one third/two third crop deal. I think it has consistently put more money in my pocket than a cash rent? A few wrecks like the drought of 2002, where I probably could have got a much higher cash rent in the spring, than what I finally recieved? But there have also been years(usually canola in the rotation) when I really grabbed the brass ring!
We have had this arrangement since 1988 and it has worked very well for both of us.

[cottonpicken]

Some land for taxes and some land the owners are actually paying the renters!
Otherwise 15-20 for decent stuff.

Cowman i didnt think 1/3,2/3 even existed anymore,you are getting one sweet deal.Why do i get the feeling you are one of those really lucky type people?

[cowman]

Well I like it and he seems to think its okay?
Actually a couple of years ago I asked him if he was getting sick of grain farming this land I wouldn't make him keep at it. He said he was making a few bucks and had to do something in this life! Now he's not hard up or anything...if I had his oil royalty income I'd throw everything I have away!
I pay one third of chem/fertilizer expenses and I provide the storage...if you have to replace bins...you will know it isn't all that sweet! I often give him a hand with plowing snow when the B train is coming, take a turn on the truck/combine, move the auger...that sort of thing? I usually get the bigger boulders picked and spot spray the fencelines at my cost.
We have a good working agreement.

[wade]

Cowman- wish you would buy some land close to me to rent out, the little "extras" really help a renter out!
My landlord and I negotiated from a 1/3-2/3 rent years ago (all expenses mine except taxes) to a cash rent. Over the years I have worked it up to that now I pay 100% prior to seeding. They seem happy that they can budget what their income will be and I can budget my breakevens.

[cowman]

I think there are lots of ways these things can be worked out so everybody can live with it? Just takes two willing people?
The fact is I could sell this land for much more than it is worth agriculturally, but choose not to. I have to do something with it and this seems to work for both of us. If he didn't want it I would probably just seed it down to pasture. Because we have such a good relationship it works very well and it lets me keep an interest in grain farming, although I have no desire to grow grain.

[ado089]

Where I am in NW Sask you don't touch land for less than $42/ac, most is even in that $50-55/ac range. If you guys get your way with the CWB ,according to your numbers,and if that 23bu of barley rule stays true you should expect your rent to go up!
Cheers

[ado089]

ado089,where abouts NW Sask?? That sounds pretty high??

[dwillms]

Cash rent south of Saskatoon is 20-30 dollars per acre.

[furrowtickler]

ado, I am in NW sask as well, only the cutknife - paynton areas that I know of are in the $40 /ac range. Even that is too high for the average production-prices in these areas. North Battleford area ranges from $20-38/ac.
We rent good dirt for $15 10% crop, works very well for both landlord and us,jmo.

[lohner]

I pay 45-50 because thats the market.
I would prefer to pay a % of gross by far. My numbers tell me on avg. I would not want to more than %22.