Farm rent today, need advise
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Topic: Farm rent today, need advise
Posted By: HD6GTOM
Subject: Farm rent today, need advise
Date Posted: 17 Jun 2021 at 11:49pm
| Guys we are probably going to cash rent moms farm starting Jan 1 2022. But give the guy access to it Oct 1st this year. He will need to mow or spray it. It has been in Crp for close to 40 years. Can anybody give me some insite on cash renting farm ground these days. I've been away from cash rent for 25 years. Soil samples are telling us it needs 2 ton of lime put on it, which we will do in Aug of this year. The farm lays pretty good. It is in 2 fields, rolling enough to drain well but not very steep hills. There are approximately 170 acres in the 2 fields that can be row cropped. We are going to build a new crossing to get to the back 60 acres. Interior fences were removed last January. Years ago when I was cash renting, 1/2 down was due on Jan 1st and the balance was due when the crops were out. Is this still that way today? Thanks for any advise. We will be using an attorney to draw up a contract. He handled my brothers estate, that included selling the brothers farm, he's pretty sharp on farm related stuff. |
Replies:
Posted By: DMiller
Date Posted: 18 Jun 2021 at 3:39am
| Rent is still done as you note, a little prep time leeway with no fee is good to allow the renter to begin the recovery process with a minimal expense as a start out. We get our rent at Quarter markers first in March and final of year in September which allows for the renter to recover from winter dead time and that period they expend the most money on equipment rehab generally also as to sales points for stock or harvested materials. |
Posted By: Tbone95
Date Posted: 18 Jun 2021 at 6:45am
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Some rent I pay in full by Dec 1, some I pay 1/2 in June 1/2 by end of the year. One guy I paid with 1/2 a beef whenever he needed it, 1 guy we donate to the church that does the food for the poor in his name.....but I doubt those last two apply to very many people! Anyway, for a sizable chunk of change, it's sort of nice to have it due in 2 installments, but really doesn't matter that much. What's rent go for in your area? $200 -ish???
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Posted By: steve(ill)
Date Posted: 18 Jun 2021 at 9:02am
------------- Like them all, but love the "B"s. |
Posted By: ac fleet
Date Posted: 18 Jun 2021 at 11:28am
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We do 1/2 due before May property tax bills come and second half due after harvest and before last of Dec. Renter happy with that since it gives him more time. We need the first half to pay the taxes and that takes most of the payment for the year. Really need to sell the farm but cant afford to. The only real income we get from it is from the 2 wind turbines, and the crp watery ways. Wanted to put the whole farm in crp but whole farm crp was dropped here years ago when all the damn farmers had to jerk everything out of crp to plant worthless corn! --- ruined it for the rest of us. Rant over! ------------- http://machinebuildersnetwork.com/ |
Posted By: DiyDave
Date Posted: 18 Jun 2021 at 5:51pm
I see from the OP, that you are applying the lime. Ought to have a clause in the contract, that the renter should apply lime as needed, otherwise you're gonna be on the hook for it in perpetuity... ------------- Source: Babylon Bee. Sponsored by BRAWNDO, its got what you need! |
Posted By: DMiller
Date Posted: 18 Jun 2021 at 5:58pm
| Around these parts owner supports lime applications, renter fertilizers or other amendments. |
Posted By: AC7060IL
Date Posted: 18 Jun 2021 at 6:45pm
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Really depends on BOTH “landowner” & “tenant”(renter) agreed arrangementS. A rental contract is a good investment. It can be as simple or involved, per YEAR agreements. Several partial rental payments are good for both entity’s annual budget requirements. Landowner real-estate tax per acre in our area can range from $20-30/ acre. IMO, ground exiting CRP that requires ADDITION MEASURES(soil tests, lime, base fertility levels, & land preparations(bush hogging/mowing/spraying), etc.., should be landowner’s responsibility since they received ALL crp payments. So a “first year” or “first couple years” rental agreement might allow any adjustments in favor towards a new tenant who does any effort to bringing land to “normal” crop base levels?? If landowner wishes to partake in any harvested crop’s grain marketing risks(storing grain til possible improved market price) then arrangements can be written into rental agreement for such?? Lots of variables that can be considered. Or, it can be extra simple too. A year by year rental agreement allows for any realized/unrealized opportunities/liabilities for both entities. So it’s very important that rental contract include ample COMMUNICATION terms, such as INTERVALS, LIST of pertinent TOPICS, & FUTURE improvements/suggestions. Some landowners wish to re-invest profits and others don’t. Whatever the rental contract includes is usually a plus. |
Posted By: HD6GTOM
Date Posted: 18 Jun 2021 at 6:53pm
| Around here the land owner provides the lime. That part we discussed with several landlords in this area. |
Posted By: KJCHRIS
Date Posted: 18 Jun 2021 at 11:11pm
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Tom, my farm in Shelby Co., IA. is cash rent, Get paid 1/2 March 15 and 1/2 Oct 15. I pay for lime every 5 years ( use soil testing recommended amount), they pay all else. Have 2 7000 bu bins w/12.5 hp fans no burner or stirators, get $1400 annual rent on bins, have sep. meter, renter pays electric. I get 10% over county average cash rent, currently have several offers for more but renter and I known each other all our lives. County EXT Office can get you rent info., or go by Steve, Ill post will get you in ball park. ------------- AC 200, CAH, AC185D bareback, AC 180D bareback, D17 III, WF. D17 Blackbar grill, NF. D15 SFW. Case 1175 CAH, Bobcat 543B, |
Posted By: DougG
Date Posted: 19 Jun 2021 at 8:52am
| Always hear of BTO offering 400 + an acre; cutting others throats just get more acres, then cant take care of it all |
Posted By: DMiller
Date Posted: 19 Jun 2021 at 8:56am
| That has happened north of here where some farmers actually made enough money to pay their leases, just no money for their own pockets. |
Posted By: HD6GTOM
Date Posted: 19 Jun 2021 at 10:25pm
| Thanks guys. Great info. Older sis is at moms now, Will be headed down there tomorrow after church. Will discuss these. Rent due 3-1 and 10-1 looks good. |
Posted By: tomNE
Date Posted: 20 Jun 2021 at 2:16pm
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i rent mine on shares. It took me and the renter working together to come to the best way to make that work. Personally, this is the only way i would rent, but understand that it might not work for everyone! ------------- AC from the start of my families farming career till the end! |
Posted By: ac fleet
Date Posted: 27 Jun 2021 at 3:07pm
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Shares dont work for MOST of us! ------------- http://machinebuildersnetwork.com/ |
Posted By: victoryallis
Date Posted: 27 Jun 2021 at 3:36pm
Never been involved in shares but I can see 50 ways it could go wrong. Cash rent is the only way to go. I could see having it graduated so that in years like this if corn reaches $7 rent is more. ------------- 8030 and 8050MFWD, 7580, 3 6080's, 160, 7060, 175, heirloom D17, Deere 8760 |
ac fleet wrote:Posted By: DMiller
Date Posted: 27 Jun 2021 at 3:40pm
| Currently a lot of cropland is now river here, where the losses will be replants, shares do not do well to those considerations. |
Posted By: HD6GTOM
Date Posted: 27 Jun 2021 at 9:29pm
Had our attorney write up a contract. It'll be done in 2 weeks. We apply the lime this time, we redo the river crossing and have the cat operator come back and clean up the mess he left when removing 2 fence rows full of trees. After speaking to the future renter, cash rent will be due 3-15 and 10-15. Lawyer is gonna add a couple of other things that I don't quite yet understand. , looks like its gonna be a pretty straight forward contract. Thanks guys for the info. 
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Posted By: jaybmiller
Date Posted: 28 Jun 2021 at 6:08am
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re: Lawyer is gonna add a couple of other things that I don't quite yet
understand. , looks like its gonna be a pretty straight forward contract had to chuckle.... 'straight forward'.... lawyer adding things you don't understand..... please get lawyer to expain in regular words what he is adding, and why. ANY ambiguity(questionable stuff..) ,goes in favour of the the renter NOT the writer(you). jay ------------- 3 D-14s,A-C forklift, B-112 Kubota BX23S lil' TOOT( The Other Orange Tractor) Never burn your bridges, unless you can walk on water |
Posted By: Lars(wi)
Date Posted: 28 Jun 2021 at 6:23am
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True what Jay said. If you don’t understand, the lawyer is doing a poor job of explaining. ------------- I tried to follow the science, but it was not there. I then followed the money, and that’s where I found the science. |