Minnesota | senodak - 10/13/2014 07:02
We had a landlord raise the rent 15%. It all depends on what you are paying now. We took the lease and probably won't make money on it, it was a one year deal. If she asked for 3 or 5 years at that rate, we would have had to let it go.
Remember, commodity prices have no immediate impact on cost of land. It all comes down to what another farmer will pay and what the owner is comfortable with.
I suspect very few leases will make money for the farmer this year if prices stay low. Everybody who rents from a landlord that knows the "going rate" will be in this boat. Those that have operations to sustain this next year will have opportunity to pick up more land next year at a more reasonable rate. The problem is is not all farmers believe that these prices will be low for long. More operators need to get more pessimistic for values of land to actually go down considerably.
+1 there's still a LOT of optimistic types out there, They may luck out, time will tell. |