This site is not affiliated with AGCO Inc., Duluth GA., Allis-Chalmers Co., Milwaukee, WI., or any surviving or related corporate entity. All trademarks remain the property of their respective owners. All information presented herein should be considered the result of an un-moderated public forum with no responsibility for its accuracy or usability assumed by the users and sponsors of this site or any corporate entity. | ||||||
The Forum | Parts and Services | Unofficial Allis Store | Tractor Shows | Serial Numbers | History |
Farm rent today, need advise |
Post Reply |
Author | |
HD6GTOM
Orange Level Joined: 30 Nov 2009 Location: MADISON CO IA Points: 6627 |
Post Options
Thanks(0)
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.
|
|
Sponsored Links | |
DMiller
Orange Level Access Joined: 14 Sep 2009 Location: Hermann, Mo Points: 29422 |
Post Options
Thanks(0)
|
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.
|
|
Tbone95
Orange Level Access Joined: 31 Aug 2012 Location: Michigan Points: 11388 |
Post Options
Thanks(0)
|
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???
|
|
steve(ill)
Orange Level Access Joined: 11 Sep 2009 Location: illinois Points: 77594 |
Post Options
Thanks(0)
|
|
|
Like them all, but love the "B"s.
|
|
ac fleet
Orange Level Joined: 12 Jan 2014 Location: Arrowsmith, ILL Points: 2194 |
Post Options
Thanks(0)
|
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/
|
|
DiyDave
Orange Level Access Joined: 11 Sep 2009 Location: Gambrills, MD Points: 50478 |
Post Options
Thanks(0)
|
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!
|
|
DMiller
Orange Level Access Joined: 14 Sep 2009 Location: Hermann, Mo Points: 29422 |
Post Options
Thanks(0)
|
Around these parts owner supports lime applications, renter fertilizers or other amendments.
|
|
AC7060IL
Orange Level Joined: 19 Aug 2012 Location: central IL Points: 3195 |
Post Options
Thanks(0)
|
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. Edited by AC7060IL - 18 Jun 2021 at 6:58pm |
|
HD6GTOM
Orange Level Joined: 30 Nov 2009 Location: MADISON CO IA Points: 6627 |
Post Options
Thanks(0)
|
Around here the land owner provides the lime. That part we discussed with several landlords in this area.
|
|
KJCHRIS
Orange Level Joined: 21 Dec 2015 Location: WC Iowa Points: 812 |
Post Options
Thanks(0)
|
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,
|
|
DougG
Orange Level Joined: 20 Sep 2009 Location: Mo Points: 7943 |
Post Options
Thanks(0)
|
Always hear of BTO offering 400 + an acre; cutting others throats just get more acres, then cant take care of it all
|
|
DMiller
Orange Level Access Joined: 14 Sep 2009 Location: Hermann, Mo Points: 29422 |
Post Options
Thanks(0)
|
That has happened north of here where some farmers actually made enough money to pay their leases, just no money for their own pockets.
|
|
HD6GTOM
Orange Level Joined: 30 Nov 2009 Location: MADISON CO IA Points: 6627 |
Post Options
Thanks(0)
|
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.
|
|
tomNE
Orange Level Joined: 13 Sep 2009 Location: dorchester, ne Points: 1214 |
Post Options
Thanks(0)
|
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!
|
|
ac fleet
Orange Level Joined: 12 Jan 2014 Location: Arrowsmith, ILL Points: 2194 |
Post Options
Thanks(0)
|
Shares dont work for MOST of us!
|
|
http://machinebuildersnetwork.com/
|
|
victoryallis
Orange Level Joined: 15 Apr 2010 Location: Ludington mi Points: 2855 |
Post Options
Thanks(0)
|
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
|
|
DMiller
Orange Level Access Joined: 14 Sep 2009 Location: Hermann, Mo Points: 29422 |
Post Options
Thanks(0)
|
Currently a lot of cropland is now river here, where the losses will be replants, shares do not do well to those considerations.
|
|
HD6GTOM
Orange Level Joined: 30 Nov 2009 Location: MADISON CO IA Points: 6627 |
Post Options
Thanks(0)
|
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.
|
|
jaybmiller
Orange Level Access Joined: 12 Sep 2009 Location: Greensville,Ont Points: 21440 |
Post Options
Thanks(0)
|
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 |
|
Lars(wi)
Orange Level Access Joined: 14 Sep 2009 Location: Permian Basin Points: 6621 |
Post Options
Thanks(0)
|
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.
|
|
Post Reply | |
Tweet
|
Forum Jump | Forum Permissions You cannot post new topics in this forum You cannot reply to topics in this forum You cannot delete your posts in this forum You cannot edit your posts in this forum You cannot create polls in this forum You cannot vote in polls in this forum |