Posts: 615
Registered: ‎05-13-2010

Rental rates, who sets them and who benefits?

A recurring theme found here is about the "greedy" landowners who try to gouge their operators with exorbitant rental rates.  but wait, who really sets the rent?  Someone must be willing to pay it.  And if the owner values $$$ more than a long term relationship, well we may not like it, and it may come back to bite him, but come on, we're all grownups, and its not illegal.  If you don't like the "BTO's" coming in and outbidding you, well, maybe you need to look at  if you're paying a fair rent.  Personally, I think a properly balanced share deal is besat for all, since you don'r have to worry about being left holding the short stick if/when markets or weather changes.  One other note, Gov payments, including insurance subsidies, eventually get capitalized into land values, or at least prices.  so who really benefits?