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tomtoolbag
Senior Contributor

Tenant question

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  Our tenant wants to rent out the old barns and feedlot(where it was before) and they started last fall putting the posts and fence back in where they once were. After about 15 years and the corn that was planted there still wouldn't get over 4-5 feet tall.

  We've kinda discussed an amount but haven't really nailed down a figure because none of us have anything to go off of for a reference. They have been using the barns for machinery storage even though they aren't very good for that. They have electric and water, hay mounds but no hay or straw in them.

  Anybody got a ballpark number, because I want it to be fair for both of us, but I'm pretty flexible either way.

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djsinseia
Frequent Contributor

Re: Tenant question

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I rented a feedlot under similar circumstances for 10 years or so from one of my uncles for a rate of $25 per head per year.

 

Came up with this by contacting my area beef specialist w/ the extension service.  At that time typical yardage was around 27 cents per head per day.  He suggested 7 cents of that would be a good number for older but usable facilities.  The remaining part of the yardage is labor, feeding costs, etc.

 

7 cents times 365 days is around $25.50, so we called it $25.

 

He provided the facility, bunks included, water (from his well) and paid the electric bill.

 

I did all work, made repairs (within reason) to keep facility usable and provided bedding and hauled manure.

 

Was agreeable to both of us for the years I used it.  Arrangement ended when I built a monoslope confinement barn on my farm - mostly so i didn't have to drive a tractor and feedwagon 2 miles there and back everyday!

 

Hope this helps.

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djsinseia
Frequent Contributor

Re: Tenant question

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I rented a feedlot under similar circumstances for 10 years or so from one of my uncles for a rate of $25 per head per year.

 

Came up with this by contacting my area beef specialist w/ the extension service.  At that time typical yardage was around 27 cents per head per day.  He suggested 7 cents of that would be a good number for older but usable facilities.  The remaining part of the yardage is labor, feeding costs, etc.

 

7 cents times 365 days is around $25.50, so we called it $25.

 

He provided the facility, bunks included, water (from his well) and paid the electric bill.

 

I did all work, made repairs (within reason) to keep facility usable and provided bedding and hauled manure.

 

Was agreeable to both of us for the years I used it.  Arrangement ended when I built a monoslope confinement barn on my farm - mostly so i didn't have to drive a tractor and feedwagon 2 miles there and back everyday!

 

Hope this helps.

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tomtoolbag
Senior Contributor

Re: Tenant question

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  I appreciate your response. They are putting the fence back in with posts and boards that I managed to get for them for free, but they had to go pick them up and put the fence in. The barn is in really good shape still but the beams didn't allow hardly any of his equipment to fit in it. I wanted to tear them down and/or give them away so somebody could get some use out of the lumber but got a lot of flack from relatives about it so I backed off about it, for now.

  The barn has concrete inside and on part of the lot, and it was separated into 2 lots before but will be all one. I told them to see how a whole year went and they could pay up then to see how things worked out but they didn't think that that was fair, and I thought about trading out for some meat or a steer but there's too many people involved and the price of beef didn't make that fair (I thought) to them.

  I thought about $500-$750 a year which lines up with the .07 p/hd number that you showed.

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