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Tiling rented land,how do you convince the landlord?
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coup
Posted 2/1/2016 07:10 (#5079030 - in reply to #5078826)
Subject: RE: Tiling rented land,how do you convince the landlord?


USA
If it is costing $1,000 acres to tile on 40 ft, person needs to be buying the equipment and putting the tile in themselves. Cost for tile on 40 ft is in the $350 acre area, plus main cost.

Numbers it takes to pay for $1,000 acre tile cost up front @ 4% int for 10 years = $123.29 acre per year. @ $3.50 corn = about 35 bu of corn to break even. I have ground that farm that 35 bu increase is on the low side of what tile adds to production

Now if a person installs the tile themselves @ a cost of $500 acre= $61.65 acre to pay for the tile over 10 years @ $3.50 corn = about 17.5 bu of increase.

For the most part around here , folks will pay the same rent for tiled or untiled ground. As far as selling price haven't seen tile ground bring any big premium vs non tile.
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