| coup - 1/25/2026 08:23 You wrong about what is causing the red ink in a lot of operations, it is not rent @ 40%. Land rent cost @ 40% is not out of line . 2/3 - 1/3 share rent was happening long before now where the tenant paid 100% of cost. So if you lower the rent cost on $400-$500 acre cash rent by 7% , would lower COP by $28- $35 acre. Rents are not where the problem is,
Share rents work because they go up and down with gross income. Right now someone getting 1/3 of the gross with no expenses would be getting roughly $250-$300 depending on yields & local price. You are correct that that is not a problem.
I would assume that "going rate" on rents from a landlords perspective is closer to the numbers you reference and for anyone paying your rent numbers, that most certainly IS a big part of the budget problem if you're grossing $800-900.
BTW, your rent numbers would be way above 40% of the cost to put an acre in for anyone with a sharp pencil.
Edited by Kooiker 1/25/2026 09:33
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The Whoa is me is getting a little old
