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Honored Advisor
Posts: 8,712
Registered: ‎07-18-2011
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Re: just two things

Great points ne50

 

And they point out the current disconnect with agriculture held by many farm land owners.  Just part of the process and eventually we will move to a time when land devalues and the investment income diminishes, or maybe they will be left to operate it themselves...... These are The things that drive the existance of large farm management companies.  Always interesting that when a "National Farms" representative tells an owner that their expectations are too high or their land won't produce that level of income, they listen to the "professional" but when their farmer says it ...... it is his problem.

Like you say these two" partners" should be in good communication.

 

If the cash flows are too dificult... changes will be made and......if  land will not support the heavy investment of farming.

I would be concerned if the economic squeeze on my tennant was great.   It takes a many years of income to recoup from a couple years without income.

 

In cases this last two weeks we have seen owners terminate leases when asked to consider a decrease or a cash lease based on commodity price.  And others say "sure, we got a raise when corn prices were high, lets adjust it back until things change.

 

Anyway for the last two years  ................ It is time for that conversation of those higher rent (less productive) agreements.