Senior Contributor
Posts: 612
Registered: ‎04-09-2013

Re: Interesting rent article...question

[ Edited ]
Agreed, it is an interesting article. QUESTION

Background: Owner and renter of NE Iowa farm contracted last summer for $325/acre for a 250 acre farm. County average rent for this type of farm (i.e. CSR 84) was $350/acre back in September 2014. Since then price of corn has dropped significantly and has caused renter to contact owner to drop a few informal hints about getting some cost relief from the original contract. Notably, renter has been renting the same farm for 35 years and has proven to be a reliable payer and a good steward of the land.

So guys (and gals), here's my question today: What is fair? Would you give a rent cut to the renter in exchange for a share of the future profits should the price of beans and corn rebound? If so, what would be a fair share to ask? If not, is there another way to work with the guy so as to not bury him in a down market? What do you think? Thanks, Packard