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Veteran Advisor

Funny

Noticed the university extension comes out
Cropland lease rates.
I had to laugh....rates for one year in the teens,
Then 30 to 40 an acre.
They have this idea of "equal equity"....they caculate
How much the land is worth vs the value of equipment.
That theory comes up with some interesting possibly.
If you have a farmer with older, used equipment,
He should pay more, than the fellow with brand
New equipment.
The theory never made sense to me, but then
Again, I never had new equipment...but should
The landlord pay for your equipment.
Interesting...the true rates were just about
Double the theory rates
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4 Replies
Honored Advisor

Re: Funny

How did the university extension become involved in the negotiation of a lease between a land owner and the operator?
Who Allows this third party into the process?
It’s between you , the land owner and legal council.
Ignore that drivel. Fairness differs by field and circumstance.
I have never heard of anyone basing their lease on a university survey or theory. It’s a business decision.
One day a lease is agreed to, and one day the lease is terminated. One should prepare for both days and spend his days seeing that the agreement works for both parties. Then be willing to terminate when it doesn’t.
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Highlighted
Veteran Advisor

Re: Funny

Looking at the formula...if all new equipment used
And a few things....the farmer would end up
Paying the renter !!
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Veteran Advisor

Re: Funny

I negotiated a long term land lease to a bio-energy company and we used cropland survey rental rates as a basis.  Everyone is satisfied a reasonable rate was chosen.

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Veteran Advisor

Re: Funny

Long  term  2010  cut  leases  were  great  in  2010  thru  2016  -  THEN   reality  sets  in  2018  - 2019   -   -   -

 

EXPERT - a person who has a   comprehensive and   authoritative  knowledge  of  or  skill   in  a  particular  area  -   -   -

 

Will  Rodgers  quote - Trickle Up  Economics   - The money was appropriated at the top , in hopes it would trickle down to the needy - Mr. Hoover didn't know money trickled up . Give it to the folks on the bottom and the folks at the top will have it before nightfall, anyhow . But  at least it passed through the poor fellows hands .  

 

Know day comparison = expert  = consolidation +  minimum wage + food assistance  = BIG  BLUE  BOX  shop center  =   food  assistance ain't  going  away  -   -   -

 

      

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