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04-20-2017 07:49 AM
Booked, I won't use the operators name, but all you have to do is google who bought up all of the Stamp Farms assets for $22 million when Stamp filed bankruptcy. I believe the landlords who were leasing to Stamp were forced to lease to this other guy until their contracts expired. The farmer who purchased Stamps assets now calls his operation B****** Ag Partners, or as I refer to him in this post as "operator X." "Operator X" farms land in Michigan, Indiana and Ohio on roughly 100,000 acres.
04-20-2017 08:32 AM
Is this a new issue that landlords will have to address in leases? Where if a crop isn`t planted timely that it nullifies the agreement. That could be a can-o-worms, Mr Bigshot rents a bunch of land he can`t afford to farm and the landlord is afraid to rent it out or have it farmed for fear the grain produced wouldn`t have "clear title". Those LL`s demanding 100% rent up front ain`t so dumb...possession being 9 points of the law.
04-20-2017 09:41 AM
Wonder who has the crop lien?
04-20-2017 10:18 AM
I would think one could write in a contract if full payment wasn't received say by March 1st then contract is null and void.
I think maybe in this case the landowners were so giddy about the big money being offered they may have not read the fine print. Some contracts may have had refundable clauses if the price of corn and beans dropped below a certain level.
04-20-2017 11:13 AM
yes, you can write a wonderful contract......but if the fellow is broke, all the contracts in the world will not get you money.
about the only good clause I've seen is if it isn't planted by such and such a date, the contract is immediately null and void
and the land owner will have time to get someone in to perhaps plant beans as a last result (this is for corn country).
with a contract ususally used, yes you have a piece of paper saying you are owed so much, but how much in legal fee's
and a year or two down the road....will you even get your money.
best might be now, go cash rent......if not planted by such a such date, they are out, and also include a charge for not
have it planted by the said date.......also place a lien on the crops until paid.....and have it paid ahead of time.....and make
sure you FILE the lien..
if they holler about all up at first...fine knock off a few bucks.......that way you are sure to get your money.
crop share......that's a whole different ball game, and deserves it's own posting.
04-20-2017 11:28 AM
Talked with a friend of mine yesterday that was leasing to this guy. My friend had to talk to a lawyer and get an eviction notice when his payment didn't show up April 1st. The problem is, now that these landlords have had the big money, they are turning up their noses to what would be considered fair rent. I have another friend who offered one of this guy's landlords a fair rent of $300 an acre for irrigated ground. The landlord said, "No, I'm getting $400 an acre from "Operator x." Well, that $300 an acre might look good when or if that landlords 1st half of rent doesn't show up May 1st. It's starting to get late for area farmers to take out additional operating money and find what's leftover for seed.
04-20-2017 01:38 PM
Landlords, for their own good should probably take a fair bid and get in line to sue the original tenant for the difference...they wouldn`t probably get anything but chalk it up to "education". It`ll probably end up hurting the honest tenants in the long run, because landlords will get spooked and want all the rents up front in the future.
04-20-2017 01:53 PM
"Who is carrying the financing"?
Is an interesting question. And maybe it has been bundled and passed on to the EU.
But this also relates to the question about Lobbying congress for a new "bail out" farm bill.
Those financial problems at that level may have a much bigger influence on farm policy than any grass roots "good ole boy" network.
Either way at this point it takes years to "work out" and the lease are certainly part of the "fun" and the court or the entity that buys the assets out will have as much say in their future as the land owner.
If they are cash leases the crop on the land is not a remedy.... or even a factor...