| Ben D, N CA - 4/2/2014 20:45
I've leased ground, always paid the rent up front, and leased ground out. Always with the rent paid up front. I leased ground out because I need a rotation yet want no part of the risk of growing row crops. If I wanted the risk I'd sharecrop or grow them myself.
We sharecrop a lot of alfalfa ground. It works better for everyone, and installments are paid as we receive deposits. However, the rent ends up considerably higher than cash rent, yet there is little risk in alfalfa compared to potatoes/grain rotations that cash rent. So it is well worth it for landowners to do so if they wish. A large majority of the land here is cash rented out on an auction basis every year though, so maybe we are just used to it.
Same thing here on Sharecrop Alfalfa or other hay/ field crops. The owner gets 25% of the crop after harvest, so on alfalfa that's 8 harvests however most of them trust us to sell the hay through a coop or broker that cuts them a check 30 days after the crop is shipped. Same thing with Grain on a share crop deal the broker at the port will keep track of which loads go on which account and they will cut one check for the grower and one check to the land owner. I have Land owner family members squabble and had the broker cut 12.5% to one brother and 12.5% to the other family member.
Cash rent on prime ground is a different story and good vegetable ground in Salinas is paid 12 times per year usually on the first Monday of the month.
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When did all the landlord start expecting rent up front.
