| coup - 11/22/2015 08:43
From the posts on here, seems quite a few believe land owners are not sharing the risk burden in an equal manner.
For those who think the land owner needs to have more skin in the game. How many would rent land under the following terms?
15% of crop and Gov payments to the tenant. Tenant provides fuel and machinery.
85% of crop and Gov payments to land owner. Land owner pays for 100% of seed, chemicals, and fertilizer.
Coup what risk a landowner has may much less than the tenant or much more. I can say any landowners I have farmed for my risk was much higher. All their ground was paid for. Absentee landowners are the highest risk for a farmer to ever farm for. They are less likely to understand markets and be able to understand rent negotiations. They just flat want their $--- per acre no matter what crop prices are. Coming from the worst area to farm in the United States the last 5-years in Eastern Iroquois, Kankakee, and Will counties this is even tougher to negotiate when you are the only place in ILL to have bad crops. |
Low risk rent
