Posted 5/22/2020 11:09 (#8273330 - in reply to #8273319) Subject: RE: When Is Rent Usually Paid?
Whiskey, Tango, Foxtrot
Big Ben - 5/22/2020 08:00
paul the original - 5/22/2020 06:49
I’ve written 3 replies and trashed them all. I’m more curious than helpful.
Living in corn/ bean area most folk assume rent covers the growing season of April through October and only split rents if sold in the summer months, or closing is held off until winter with that spelled out in the sale. We have the 5 dead useless months to transact land no one is using it owner or tenant.
I too am curious how a land lease is structured in a year around, overlapping crop area.
And, in areas where only winter crops are grown.
How do you get in and out of a lease with winter wheat and second crop beans, for example. Using the calendar year wouldnt seem right for lease terms.
Would need to better understand how ‘common’ rental terms are worded in those areas.
And is there property (real estate) taxes, how were they pro rated? That would tip off how rent should follow....
Fallow/wheat rotation is another interesting one since it’s a two year cycle. Ideally a land exchange happens right after the combines leave the field because anything done after that is working toward the crop that’s two years out. Of course it’s not always that simple, so everything is subject to negotiation.
Irrigated ground is even worse to find consistency in sales terms with fall crops, spring crops, established hay, high value specialty crops in long term rotation, etc. Nothing can be assumed in a land deal, everything must be clarified/specified.
It’s kind of blowing my mind that none of the the buyers, seller, or especially the auctioneer didn’t bring up the rent at some point in the sales process. What kind of an auctioneer sells something without laying out the terms?
No kidding, I've rented land out and rented land with everything from 5 page contracts to a handshake. Even on a handshake deal something like that would have been specified. With the rotations around here getting more dependent upon water availability, lots of things that weren't even an issue 20 years ago get brought up first thing now.