| buddyandkirby - 1/9/2016 01:48
There are a couple problems i have with this forum. First of all, some have gotten cash rent lowered to sub 3.50 cash corn value , and good for you. What if we have a tough crop year and we would see 5.50 to 6.00 dollar corn. So farmers would throw a chincy 25 dollars per acre their landlord way in a bonus and reap the benefits like they did in 2009 through 2013. Thats why many landlords wont budge now, they were left out of the riches in the good years. Secondly, how many of you guys are cutting living costs, and not just cash rent? The 2nd part may or may not pertain to any of you but i feel compelled. When i was first married 30 years ago my wife and i raised 4 kids, she taught school for 21 years for a little living expenses and health insurance and we lived in a chicken coup. I never asked my landlord to lower the rent , but they always wanted me to survive and farm their land because { I believe} of the way we sacrificed and lived. In my neck of the woods there are 4 young farmers who are complaining that they cant make it. They all have $400,000. houses, wives who dont work , and have been driving newer vehicles and taking trips.
Here's my problem with your quote. Some of you "old timers" have no idea how much harder it is to raise a family today. Health care costs for many of us are $12,000 a year just for the premium. God forbid you have any type of medical issues in the family. Day care costs are astronomical, along with wage stagnation, that's why many women with young children chose to stay home or work less hours. These women will likely return to the work force in their mid to late 30's. Most of these increased costs, such as healthcare and wage stagnation, have really hit hard the last 5-8 years. Lastly, this "me generation" has lived through the hardest economic times since the Great Depression, have been laid off and lied to by corporate America in record numbers, carry the burden of healthcare and education costs that no other generation has and your pissed that the guy, wants to lower his cash rent? Because he lives in a nice house or has a decent car. News flash, mortgages have been cheap for years and are certainly not the reason a "kid" needs to lower his cash rent. I would literally bet the farm on that. These "kids" parents went through the 80's farming with young families. The last thing the "kid" is doing is saddling himself with a mortgage. So tired of "bitter old farmer." Take risks. That's how you get ahead. Sitting on your ass waiting to inherit your father in laws quarter and ****ty farm house when your 50, doesn't make you the "worked hard for it all" guy. We all start somewhere, some with more than others, but it's where you end up that counts. Is the business bigger or better today than it was when you "got it?" As for cash rent, it's a business. Some are willing to leverage more than others, some are better negotiators, and some are just plain stupid. Personally, I haven't had a landowner reduce the rent or increase it the last couple of years, after all, taxes have skyrocketed on these people and its damm hard to find land to rent. Older guys that I look up to, have told me many stories of guys that gave up rented ground and went broke a few years later because they had no revenue stream. If I do a better job marketing my grain and continue to keep the pencil sharp, than cash rent is the least of my worries. After 2016, if things stay the same, we will chat about some very modest reductions. Hopefully, we won't have to do that. But please, save me the "jealous old farmer" story for another day. |
Rent negotiations
