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Rent based on APH
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4x2188
Posted 2/5/2016 15:26 (#5090447 - in reply to #5090247)
Subject: RE: Rent based on APH


Ns/Tr co. Ks
Seems like a strange way to do it. Owner gets paid more as the operator increases production. Or rent goes down as he doesn't. ??? Seems strange to me. I'd think cash rent would be the same whether you've got a guy willing to take the risks involved to raise 1.5x county average or lay low and raise .75x county average. The operator can't afford to put additional inputs in for additional yield and then pay more because of it. All the while the owner risks nothing additional and expects more.
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