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| Your risk pales to that of their asset? When I buy land, I know what the scheduled principal payments and interest payments will be. Yes it is hard to pay for, but you know what it is every year. And you simply can ask for whatever rate of return and as alluded to, will likely get it. The tenant risk for 2015 crop is much more of a risk with asking rents in my opinion. If you truly figure everything in, you are not giving yourself much room right now. If you rent everything, that is a large risk to carry.
I agree that much of it is caused by greedier farmers running the rents up. Nonetheless, I guess it's a business.
But I do not believe land is a commodity. Unless it is on the board of trade. And like my grain commodities, I cannot tell the coop what I want and they pay it to me because I need to have a certain rate of return. Well, I can, but we all know that it won't work.
So I do not agree with your response, but I'm open to the idea.
I do not feel entitled to farm anyone's ground, that's why I buy it, but I feel that farming was one of the last frontiers where equality, friendliness of neighbors, and ethics were found, it's getting tougher to find, when you throw more dollars into the Ag fire.
Flex leases are where it's at, but landlords don't like the complexity, they like the ease of cashing the check. They feel that when they're finished, they'd like everything to be easy...rightfully so.
I drive my cheap car so no one can use that line against me that I blow my money, forcing them to come up with a real reason. | |
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Playing devils advocate of the devils advocate!
