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Senior Advisor

Re: Strong Cash Rental Auctions In Iowa

There is nothing to keep you from negotiating an extension to the lease prior to the next auction. The land owner would need to find the offer attractive though.

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Senior Contributor

Re: Strong Cash Rental Kraft t

Completely agree with being able to reject bids, I wouldn't call someone dumb for wanting to see a balance sheet as well. I have a landlord who ask for one bank signed about every three years. As long as I know he isn't telling the whole county my situation I am fine with it.

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Senior Contributor

Re: Strong Cash Rental Auctions In Iowa

Someone asks to see my balance sheet before they rent to me, and I'm asking to see what their prior lease was. All rent due up front avoids that.
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Senior Advisor

Re: Strong Cash Rental Kraft t

You can tell me as well. I probably won't tell a soul! Ha!

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Veteran Contributor

Re: Strong Cash Rental Auctions In Iowa

Generally speaking I think most landlords want a longterm relationship.  If letting them see my balance sheet ,even though the rent is upfront gets me the farm no big deal. I think landlords want assurance their tenant can stand a rough year financially.

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Senior Contributor

Re: Strong Cash Rental Auctions In Iowa

Absolutely, the bidding process would have to end with some sort of interviewing process and that would allow you to exclude unfavorable tenants. Idelivered and I had coffee this am at the local coop and we did have agood discussion about this whole setup. I think what has just happened is that those higher cash rent rates have just gone more public. Negotations have gone from the kitchen table over a cup of coffee to an auditorium in front of your neighbors. Not sure in the long run that this is good...MikeM 

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Senior Contributor

Re: Strong Cash Rental Auctions In Iowa

The idea of someone from New York buying a farm In Iowa and then cash renting it out to get the mortgage payments I guess to me isn't a sustainable idea.   I wonder WHO did rent the majority of land.  I don't know the details but if I was renting to someone for the last 25 years and then put the auction up for cash rent auction?  Why change now,  did the ownership pass hands?  

Farming is a business but its a different business the other industries.  

I guess if a guy would have been farming for me for the past 25 years and I've been OK with what he was doing why would I want to change, sure ask for more rent is fair in today's world. 

 

I don't really like the word "greedy" most people have reasons for doing what they do, something like now bidding that much doesn't make since to me.  

 

Can you raise corn over there this year for say 85 bushel/ac at $5/bu?

Like in another post 100 bushel for rent at $5 ish/bu

 

Don't forget about that operator over in Illinois

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Senior Advisor

Re: Strong Cash Rental Auctions In Iowa

I wish I could have been there for the coffee. Does JR reside in the same area? 

 

I know the cynicism created by these auction events may have caused so much turmoil in the farm community. Hiowever that is what raw capitalism looks like and it will really make it tough for those ill prepared.

 

Dear land LORD. Please have mercy upon us!

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Contributor

Re: Strong Cash Rental Auctions In Iowa

By the way...The two cash rent auctions by Glenwood that Jim was talking about, later fell thru. Not sure what happened but Al Hughs was out a week or two later going to farmers that originally bid at the auction, asking if they would rent the farms because the winning bidder had to back out.

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Senior Contributor

Re: Strong Cash Rental Auctions In Iowa

Yes, Jr lives a tad south of me. Not quite the center of the universe Ida and I are but close enough we can't talk about him behind his back :-) Just a short drive from Oklahoma, Don. Let us know when your on your way and we will buy you that cup...MIkeM

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