Land rent

[chaser]

Just wondering I have a landlord who wants some way to rent his land out yet keep farming status write offs looking for ideas thank you

[Daylate]

We do it for one guy. Based on $/Ac. But sell grain in his name before year end. Not sure how it works for him with expenses or anything?

[bigzee]

We did this for three years it was a 60-40 split, with him paying his share of fert and chem bill Basically any grain sold was into his name, he would then give us a cheque for our share under custom work, say custom seeding. That way he could right it off. At the end we had trouble thinking of thinking of custom work ideas. I guess I even did some custom rock picking, and no I retired from that so no one call for rates. LOL

[bgmb]

If he wants 60 cash rent pay him 120 in the form of grain hauled to the elevator in his name, he pays you back 60 the next day for custom farming. Net 60 cash rent and he is still a farmer.

[bgmb]

If he wants 60 cash rent pay him 120 in the form of grain hauled to the elevator in his name, he pays you back 60 the next day for custom farming. Net 60 cash rent and he is still a farmer.

Might have to float the 60 up and down a bit from year to year to make it look like he has some variability.

[jake550]

I'd tell him to keep farming it himself then.
Good way to get in trouble with tax man.

[sk_wheatking]

I'd tell him to keep farming it himself then.

Exactly.

[bigzee]

Little off topic, some land sold about and hr and a bit of me for $400,000/quarter was a 9 mill transaction. One large farm bought it. There would be no thought of keeping my status as a farmer if I was offered that. The land is far from "elite" but got huge $$$$.

[sumdumguy]

As long as he shows $10,000 farming income and some farming expenses he is a small farmer. Not all farmers are big farmers. He can just scale back - you could custom farm a piece for him. Lots of guys just keep a bit to stay in the game. Tax man doesn't care. This is still a free country and we can do what we like.

[farmaholic]

"Elite" is a word I've never heard used to describe land quality...is there such a beast? ...not here in the slum of the Ghetto.

What's with the farming status thing? Only save tax on diesel now. Bit of a saving on farm location vehicle registration (in sask anyway???). Is there really anything else I'm missing?

[bigzee]

As long as he shows $10,000 farming income and some farming expenses he is a small farmer. Not all farmers are big farmers. He can just scale back - you could custom farm a piece for him. Lots of guys just keep a bit to stay in the game. Tax man doesn't care. This is still a free country and we can do what we like.

You tell him sumdum we all support you. Maybe we can all sit back and smoke up after you give him your piece of mind. LOL

[sumdumguy]

Yep Bigzee, our Agriville reunion could be memorable.

[bigzee]

Yep Bigzee, our Agriville reunion could be memorable.

When are you guys going to start seeding?
I hope to start end of month, she's pretty wet in places this wind has really helped though.

[mbratrud]

I believe as long as they have skin in the game they can carry on farming status. For example crop share or some kind of variable cash rent based on production. He should talk to his accountant to confirm.

[Guest]

"Elite" is a word I've never heard used to describe land quality...is there such a beast? ...not here in the slum of the Ghetto.

What's with the farming status thing? Only save tax on diesel now. Bit of a saving on farm location vehicle registration (in sask anyway???). Is there really anything else I'm missing?

some gst back I guess? I think power rates a little cheaper , etc.

we farm a few quarters of that elite land , supposedly best in Sask., but 42 " rain ,well, it really doesn't matter, lol