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Trying to Understand the thinking behind this
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dpilot83
Posted 3/24/2015 09:01 (#4473550 - in reply to #4473527)
Subject: RE: landlords or business partners?



Your reply in that thread and your bringing it up again here is confusing. What is wrong with what he said there?

I believe the relationship between my landlords and I are mutually beneficial. They have someone who takes care of their ground and provides them with a source of income and I have a larger base of acres with which to support my family.

This means that relationship is a PARTNERSHIP and affects both of US.

Honestly it's not going to go well for them either way compared to the last few years because their land can no longer generate the same number of gross dollars it could before. This means the rent they will be able to extract from it over the coming years should prices continue to remain lower than they were will be less than they were able to achieve in the past.

My opinion is that things will go the worst for them if we don't work together though so that I can at least have a chance of making a profit. If I go bankrupt, they may miss a payment. If I do everything I can to avoid going bankrupt, I may not go out of my way to take special care of their land.

The long term solution is clear. Land is not worth what it was because it cannot produce the gross dollars it used to produce. If landowners (both farming landowners and absentee landowners) accept that, a healthy relationship for both parties can be retained. If not, the relationships will be broken one way or another.
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