AgTalk Home
AgTalk Home
Search Forums | Classifieds (134) | Skins | Language
You are logged in as a guest. ( logon | register )

Tiling rented land,how do you convince the landlord?
View previous thread :: View next thread
   Forums List -> Crop TalkMessage format
 
vickruse
Posted 2/1/2016 05:14 (#5078826 - in reply to #5077354)
Subject: RE: Tiling rented land,how do you convince the landlord?



SE Iowa
keving - 1/31/2016 14:52

Took on a new farm last year that is a mix of heavy clay hills and flat gravel bottom. The clay is of coarse very wet in the ravines.
We offered to pattern tile about 65 acres of the farm with no cost to the owner,only a signed 10 yr lease. In the agreement the rent per acre would not increase either for 10 yrs.
at first mention of the proposal, the owner was very interested and wanted to see estimates of the project. As soon as receiving one of two estimates, I emailed the proposal to the landlord/owner.
Their response was this...why spend that kind of money? We only got stuck one time on the hill !! ( they have not actively farmed in almost 30 yrs)
How do I respond to them without insulting them? Why would you turn down an offer from someone to spend $50k to improve your land?
We've tiled other farms over the yrs with this same concept and have never had an issue.
Never thought I'd be asking for advice on what others have done to convince the landowner this is a win/win deal ? TIA

My only thought is the rent must be pretty low for any tenant to pay for tile on a farm they do not own. Around here that is not possible. To pattern tile here on 40 foot centers you would spend close to $1000/acre depending on the main. Over ten years that is $100/acre per year extra rent all paid upfront on a ten year contract. So the current rent is $100/acre under the going rent for your area? Then I would consider it. But with corn at $3.50/bu to get the extra $100/acre income you would need almost 30 bu an acre each and every year, and that is just to break even and not considering any interest charges. And if you buy the farm down the road you may pay for the tile again. Is the current rent so low BECAUSE it need tile?
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete cookies)