2010 Land Rent

[Hopperbin]

Percent gross of your farm to pay rent? Is that it? It is up to you but in my experience in my area the crop share guys have lost a lot. Basically what I have thought of crop share in the past is if you pay the going rate of crop share your paying too much in a good year. If you pay what your legally supposed to pay during the bad year you very screwed but I prefer the F word.

[Hopperbin]

I was only giving example for my farming area. If you can pay 15 to 18 percent then all the power to you. It would not happen here, and I don't need any more stress from land lords. As far as I am concerned I have the caise coverage that a lot of agrivillers do not believe in but still it is a coverage that is there. Crop share and cash rent are things to think about if your renting. As for caise I think best to cash rent, that is best for the person farming the land.

[Hopperbin]

Reason being if if you have not clued in is that cash rent will give the farmer higher highs and lower lows and better payments in the long term. So Spock or logic would dictate that two persons growing the same crop all things equal would be the one who takes more govt. funding be the winner.

[Hopperbin]

The crop share at a % can work for some. I know of a few that use this type of arrangement. If you use the % share, I would suggest a maximum dollar amount to offset the really good years. Some use a minimum dollar share as well to have a floor price.

As for the Agristability, the problem is many producers have not been adjusting their acres for the crop share percentage. Ex 160 acres on a 20% share, the farmer is only farming 128 acres. Structure change calculations get influenced both good and bad depending if the farm change.

Hopper, if you claim to be a supporter of the program (and the program works well from my standpoint for business minded producers), hopefully you take 70-80% crop insurance as an added protection to insure your reference margin.

[Hopperbin]

Bullshit saskfarmer99, where is the option to adjust acres because a crop share arrangement? There is none.

[Hopperbin]

BS to you. There is no "option" on the form, and the program would never include a line on their forms to handle that.

You must adjust your acres manually. If you know so much about the program, I think you clearly never read the handbook. Try page 25 and 26 for starters....

I feel for your accountant if it never came up in their discussions with you or their data entry forms, quality control sheets

[Hopperbin]

And if you could adjust acres that would not even make a difference, unless in the case farmer takes on more land just crop shared and in that case claiming less acres is going to be damaging. When increasing farm size claiming the most acres is beneficial to increase reference margin.

[Hopperbin]

For a land lord to participate in Agristibility he must also have a share in expenses. You cannot just go on changing your farm acres as you choose. He who pays for expenses claims the acres.

[Hopperbin]

Who is claiming you can adjust your acres as you want?

Who is claiming that anyone with sales can be in Agristability without a true joint venture arrangement?

I don't think I ever mentioned that

My only point is that many producers have not reported their correct acres if they are in a crop share arrangement which has influenced their structure change.

Each farm's situation will be different but here is a common occurance: If you had a certain amount of crop share acres in the past and have not reported the correct acres information and then switch to cash or increase acres, your structure change will not be fair to you. Even worse, your past claims may have been higher because of the incorrect reporting, which is subject to clawback by the administration if it is ever discovered in future years.

[mbratrud]

The intention of the share percentage I am working with is only to determine that value of the rent otherwise the mechanics would be the same as cash rent. The landlord gets payed (just like the CWB) an inital then a payment to the minimum, later after the final amount is determined at the end of the crop year they would recieve the balance.