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Fair return

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    #1

    Fair return

    Always lots of talk about how rents are too high, so what is a fair return for renter,10/20/25%,a 50 bu canola crop at $11/550 x20% =110 too much ??? 60 bu wheat@650=390x20%=78. Lots seem to think they should have land for nothing or a 3% return for value to landlord, fair????
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    #2
    The maximum amount anyone is willing to pay, is fair.

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      #3
      Originally posted by Horse View Post
      Always lots of talk about how rents are too high, so what is a fair return for renter,10/20/25%,a 50 bu canola crop at $11/550 x20% =110 too much ??? 60 bu wheat@650=390x20%=78. Lots seem to think they should have land for nothing or a 3% return for value to landlord, fair????
      How does canola 25 bus x $11 work?

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        #4
        Originally posted by vvalk View Post
        How does canola 25 bus x $11 work?
        About the same as 60@$14

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          #5
          Lots of landlords are about to get a sob storry. "Only 2 inches of rain blah blah blah." Followed by a request by the tenant to renegotiate the contract. Whats the landlord to do? Sue for a breach of contract?

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            #6
            Originally posted by Horse View Post
            About the same as 60@$14
            Huh??

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              #7
              I've never seen Landlords hold a gun to the heads of tennants. You wanted it, now pay up. WTF...do you HOPE to average out over a three or five year term? Should every crop turn a profit every year? Whose taking the biggest risk? The landlord deserves a "fair" return but more than the tennant? Again, whose taking the biggest risk? If you want to give margin away to satisfy your ego...go ahead. If you can't stand to see your neighbors get it or have one more acre than yourself....

              In this part of the country, the amount of land you farm can depend on who you're hanging around with and who your relatives are. High testosterone types...competitive at all costs. In some cases bigger balls than brains.

              To each their own! I won't begrudge your success or mourn your failure!
              Last edited by farmaholic; Sep 3, 2017, 22:48.

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                #8
                Some dirt here traded for about $320K, 3% on that "investment"(loosely termed) on 150 acres is about $64/ac. Each additional half percent on the $320K initial investment adds about ten bucks to the per acre rent.

                This all tells me "Investors" are dumping cash into farmland. ..because the rental income would barely pay the interest on a loan (without a huge down payment) let alone any principle payments.

                Yup...give-em as much as you can so you can farm it...but never own it!
                Last edited by farmaholic; Sep 3, 2017, 22:50.

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                  #9
                  Horse what fukin planet are you on ???

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                    #10
                    What about guys getting 30 bus wheat at $7 ?
                    Or 25 bus peas at $8
                    Or 25 bus canola at today's price ? Not some fukin fairy tail B/S

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