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cash rent with a little extra
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coup
Posted 1/5/2019 22:21 (#7223457 - in reply to #7223368)
Subject: RE: cash rent with a little extra


USA
Steve - 1/5/2019 20:45

coup - 1/5/2019 21:31

marlinpain - 1/4/2019 11:02

Landlord called yesterday , he was wanting some sort of extra payment for good years. Good meaning price or yield. I can see on a real money making year he should share if the rent was fair. Pretty sure rent won't go down so how would you go about this? I'm looking for real advise no hollering about rich landlord. TIA



Fred this isn't probably what you want to hear, but best give him what he is wanting rent wise and come up with a plan to make it workable through the good, the bad, and the ugly. Not a lot of good options when it comes to negotiating rent now days, when a landowner has decided they want a bigger piece of the pie. So way I look @ it takes X amount of $ to raise a crop.
If landowner wants a bigger piece of the pie, some other cost in the equation is going to have to get a smaller piece of the pie.


I know a few guys that had a similar thought process.....just before they went broke.


Then you and them are- were clueless about what I posted . There is still a lot of fat built into too many folks input costs that can be be trimmed to make rent numbers work, without reducing the bottom line. More times than not rent costs aren't what lead to failure, it is bloated COP.

I had guy here to day that could add $100 acre to his corn bottom line by making one simple change. Have talked to him about it over the last several years . His refusal to take action has ended up costing him in excess of $100,000 on 250 acres of corn in the last four years. Some people get it some don't till their forced to face reality.

Edited by coup 1/5/2019 22:22
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