Clay SEIA - 3/24/2015 11:36
What happens if you plead poverty, get rents negotiated lower, and your area has a reasonably good crop while the price of corn rallies back north of $5? How's the next rent negotiation going to work out for you? We have switched most of our rent over to flex contracts and if we have $5.00 corn my landlords will not be taking a cut in rent. If we have $6.00 or $7.00 corn they will get more rent then they have ever gotten before. I think there are ways to work with your land owners so that it works out good for everyone. I have paid some good bonus in the past and renegotiated multi year contracts when the prices were going up and I have a very good working relationships with my land owners. I will treat them right and they sure seem to treat me right. When I went to my landlords this winter we were prepared to let 1500 acres go if we could not get something worked out. The way it ended up I only lost 1 quarter but I think we will be better off without the land that wouldn't cash flow at the current rent prices. All the other landlords have been very good to work with and they have appreciated our working relationship in the past and I am sure happy to have such good landlords now. There are ways to work around this and still be fair to everyone. They will not feel like they got shafted if we have $5.00 corn. |