Figuring How much Land Rent to Offer

[wade]

In our area (SW Alberta) most have gone away from the old 1/3 crop share agreement to a cash rent because of rising input costs, etc.
If 33.3% is too high, then what percentage of gross returns do you base a fair land rent price on?
Also, who owns the straw with most contracts?
Other considerations?

[Oliver88]

33% is insanity.

20% would be my top end.

[15444]

33%?! No wonder you grain farmers don't make squat. You give the profit to someone else!

[15444]

33%?! No wonder you grain farmers don't make squat. You give the profit to someone else!

[stonepicker]

33% must be with paying some inputs also?

[riders2010]

Not much shares here unless family as many arguments over how much grain there was or not moved in time etc etc. But it used to be 25% or if 33% then 33% of input costs also.

[Braveheart]

We did 33% with one landlord this year. He paid 33% of all inputs except fuel. We felt we did well. Landlord did very well. Crop was canola and yield was extremely good.

[farmaholic]

There is a 20-25% crop share with a "minimum" cash value rent. Kinda different. If you bomb you still owe a cash rent. Not sure on values though.

[Richard5]

The more you give away on the crop share the less income tax you pay

You don't get a donation receipt though...

[fjlip]

Crop share is a storage hauling selling nightmare, I was told by one who has 5 such landlords.