West of Lincoln a little bit | If the crop is burnt up, the landlord is out nothing, the farmer is out at least 15% the first year, maybe more depending on insurance. Enough years of that in a row, and his APH is so low the farmer is at CONSIDERABLE risk of losing everything while the landlord still gets his rosy cash rent. If the value of the land drops from $10k to $5k, he still owns the land, it still pays him every year, and probably someone will pay him inflated prices hoping something will change in the market to make his high rent doable. Either way the risk is FAR greater on the tenant. I'm willing to change my opinion to 90%-10%, maybe 80%-20%. I don't feel its up to the tenant to be sure someone who overpaid gets a good ROI. I wholly prefer crop-share and hope that when we retire we can offer that to the next generation with any ground we own. |
Landlord has all the risk? How?
