Without Renters Investors buying land Get a hard Lesson!

[ado089]

If I was a couple of years further into my farming career I would not be farming in Canada anymore. There are alot more fertile fertile areas of the world with lower or equivalent land costs way closer to end markets.

[farmaholic]

Ado: There are some political
environments I wouldn't want to farm in
even if the land is better and closer to
ports. I don't know which areas your
referring to, just saying.

Regarding ROI, the landlord deserves a
decent ROI, but if he overpaid for his
asset that isn't my fault. Land should
be valued(for purchase and rent) based
on what it can produce on average.
Taking into account current costs of
producing a crop and what it is capable
of producing. One thing I do have to
say is too bad though, is when things
get tough one of the few places tenants
can reduce their costs is what they pay
to rent land, none of the businesses
that are supplying goods and services
volunteer to reduce their prices.....
so the landlord suffers first.

[ASRG]

Why not a crop share? I rent my land to the same guy (24 years now). I pay 1/3 of fertilizer, seed, and spray. Get 1/3 of crop. I supply the bins. If I choose I can participate in crop insurance (1/3 of the premium/ 1/3 of the payout). I give him a hand if he needs it.
He makes all the decisions on inputs, crops, marketing.
Seems to work.

[furrowtickler]

ASRG, that is fine if the landlord stays current about the COP, but very few landlords keep up with how much things change. If you do thats admireable.
We do a split cash/crop share that works well - we pay all expenses. This works well.

[sumdumguy]

ASRG, you are to be admired, you must trust
your renter. This hasnt worked all that well for us.
Somehow, our fields dont yield much. Also some
years got nothing.

[ASRG]

Well...he's my cousin. Eventually his kids might own my land.If I had to go to another renter I would just sell it. Do I trust him? 100%.

[bucket]

Now you get two gold stars!

[bucket]

That is vision. Looking at the long term while taking care of short term in a friendly and productive way.

[blackpowder]

Newguy. you are right. I'm just pissed about
paying fair cash in years when no crop all the while
treating land as my own and improving it.
Now forced to pay %25 of gross because lower
cost competition offered it. Long term continuing
lease becomes 1 yr terms only. Told glory days will
last forever.
Not crying because my fixed costs can't sustain
it.
Word of advice: try not to write a check for half net
worth to ex-wife.

[tstep]

SF3 I am and have been with you on this all along. Farmers are their own worst enemy. WHY pay these investment companies the big rent dollars,80-120 dollars per acre, just so they can say that they made 6 or 7% return on their investment, while your inputs go up, machinery costs go up , mother nature does what she wants and you do ALL the work. We as farmers have to say to the investment companies this is what we will give you,NOT them telling you what they want..