Big Ben - 6/14/2025 11:26
kb ag - 6/14/2025 09:
Rents kind of need to be a return on investment level for the landlord,
No, they do not. If landlords bought too high or are using an inflated valuation when figuring their ROI, it’s not the farmer’s responsibility to cover the landlord’s mistakes. Quote
Didn't say it was, and didn't mean every roi for every landlord, just landlords in general. Ethanol plants can get by with underbidding corn value to them, because it is a commodity market and it only has to go as high as need be to obtain supply. They had to pay through the nose for corn a few years back because local supply was low.
Land isn't a commodity, it is basically static with more wanting to use it than is available. The most efficient will be able to make money and pay higher rents. Some will be stupid and hurt their business, but the vast majority will make enough to keep moving forwards and become even stronger and keep the rents to an roi that a land investor
(or that farmer
)might be interested in depending on the returns of other investments.
Another part of what I was speaking to was farmers taking advantage of older people and such that don't know what rents should be and still paying them a 20 year old rent. That ticks me off. That landlord should be receiving a proper roi, but aren't. I have purchased land a few times from an estate type deal and then get the rent for the current crop year and I am amazed at how bad some farmers will screw an old landlord.
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