flying belgian
Well-known Member
I rented the farm out last year. Now for upcoming year I want to raise the rent. This is in so.mn. when do you typically notify the renter and what method of notification is usual? ie. Phone, letter, visit?
- Thread starter flying belgian
- Start date
I'm not from Minnesota, so I don't know what is typical there. The attached article says that a lease needs to be in writing to be binding. I assuming that notification in writing would be best, and person delivery would be more friendly than a surprise in the mail.
Minnesota farm lease
Minnesota farm lease
Bob Bancroft
Well-known Member
- Location
- Aurora NY
I've never had a lot of faith in projections, as things we don't foresee change. But, it's good to have some idea of what to expect. My little look into next year, as a cash cropper, is not cheery. As one who rents farmland from a couple of neighbors, an increase in rent right now would not be welcome news. I think an in person conversation with your renter would be best.
Here in NY, for tax and other reasons, the standard is a five year written agreement. I have two years left on an agreement with a neighbor who just passed away. Everything passed to his son in a trust. A solar panel company is throwing around $1200/acre lease offers. I've heard another is $1400. All too good to be true. It will be interesting.
Here in NY, for tax and other reasons, the standard is a five year written agreement. I have two years left on an agreement with a neighbor who just passed away. Everything passed to his son in a trust. A solar panel company is throwing around $1200/acre lease offers. I've heard another is $1400. All too good to be true. It will be interesting.
Any company with LLC behinds its name is not to be trusted. The original owner will sell it down a chain of LLCs and you end up with an LLC with no source of revenue. Each solar project is it's own LLC with no deep pocket backing. Just ask the people in Michigan how much money they got from Boyce Hydro when its dam failed. The actual owner was a millionaire but the only thing left to sue was a broke LLC.
redforlife
Well-known Member
If renting out for one year at a time, and I presume you are since you didn't specify otherwise, the thing to do would be have an in person conversation at end of year, or beginning of new year, regarding rent raise. And you just can't really blurt out that you suddenly decided to jack the rent up on your renter. Well, you can I guess, but if your renter is not willing to pay extra, he might just tell you to
stick it.
And if your happy with this renter, and have to go shopping around for another one, you might not like being in that boat. Some renters will highly abuse your ground. Especially if start getting real greedy and trying to squeeze every rent dollar you can out of it. Because they in turn will try to squeeze every dollar they can out of your ground. And do it in one year.
stick it.
And if your happy with this renter, and have to go shopping around for another one, you might not like being in that boat. Some renters will highly abuse your ground. Especially if start getting real greedy and trying to squeeze every rent dollar you can out of it. Because they in turn will try to squeeze every dollar they can out of your ground. And do it in one year.
All the years I rented ground 90% were verbal leases if the they wanted more rent they told me and if I didn't think it was fair we talked about it. I still have one lease and he just sends me a letter telling me what the rent will be. I wouldn't rent to someone I don't trust enough to pay the rent agreed to verbally.
I dropped my renter a few years ago about this time of year because of troublesome accounting issues on his part and quality issues. I did it in person and it was as you expect very tense. Since I was renting my land to his relative it was very tense, but it allowed the two of them to work out any issues of carryover fertilizer costs etc. In my area its year to year. I would NEVER sign a five year lease nor would my renter offer one. Why would you want to tie yourself to any possible rent increase in the future? And he has only done a three year one time with a tenant due to improvements he made on the land.
Flying I notice in another thread, that you mentioned you had recently retired, so I will assume here that this past year was the first year you rented things out. If you have a written lease, there should be a notice provision in the lease. Ill bet you would already know that if indeed you do have a written lease. If you dont have a written lease, I would suggest contacting the lessee yesterday. In the event he declines continuing to lease your farm, you will have time to shop your farm around before the growing season comes.
ADB-Ia
Member
- Location
- New Sharon, IA
If you were in Iowa it is already too late. Any farm lease that is not legally terminated before September 1 automatically renews for another year. This is true even if the lease agreement is just a verbal agreement. Any negotiation needs to happen before it renews or you are stuck with the old agreement. If you are on friendly terms with your renter, he may agree to pay more but you really should have had this discussion earlier. ADB. Rented the same farm for 42 years so I had many such discussions.
flying belgian
Well-known Member
Let me give a few more details. I have a written one year lease with him. Jan. 1 2021---Dec. 31 2021. No automatic renewal clause. All other parts in the lease agreement are pretty generic such as Tennent has the right to harvest his crop even if it extends beyond end of lease and wording about subleasing etc.
john in la
Well-known Member
Just thinking out loud.
Why would anyone rent farm land on a one year lease??
Lime inputs last for 3 or 4 years.
You grow beans this year to help offset N cost to grow corn next year.
And yes it is a two way street.
A farmer could lease some land short term; put in very little inputs; deplete the land of resources; and move on to another piece of fresh land.
Raising the rent after only one growing season sounds like you found out your neighbors are getting more rent than you and you now feel cheated.
Why would anyone rent farm land on a one year lease??
Lime inputs last for 3 or 4 years.
You grow beans this year to help offset N cost to grow corn next year.
And yes it is a two way street.
A farmer could lease some land short term; put in very little inputs; deplete the land of resources; and move on to another piece of fresh land.
Raising the rent after only one growing season sounds like you found out your neighbors are getting more rent than you and you now feel cheated.
As a tenant I would want it mentioned before the old lease ran out. Or, about now.
As you know we need to plan inputs for next year, and this is a very difficult year to obtain and plan supplies. Your current renter or a potential new one should really be in the loop by the end of December so as to do purchasing and tax planning for themselves.
If I were trying to have a longer relationship. I would prefer a lease that ended the end of November, so I could have the month of December to work out my next year plans.
If this were a high dollar yearly rent auction deal thats different.
Paul
As you know we need to plan inputs for next year, and this is a very difficult year to obtain and plan supplies. Your current renter or a potential new one should really be in the loop by the end of December so as to do purchasing and tax planning for themselves.
If I were trying to have a longer relationship. I would prefer a lease that ended the end of November, so I could have the month of December to work out my next year plans.
If this were a high dollar yearly rent auction deal thats different.
Paul
my renter and i talk all year long. we have a deal that we both need to make money. i took many extra steps including interviewing all prospective renters! We rent on shares and it took a few years getting that all worked out. But we talked openly and have what i consider a bullet proof contract PLUS he knows i'm always open to discuss business without any preconceived notions!
Tony in SD
Well-known Member
I alway negotiate in person. I know we both need to make money. So when I do raise the rent, I keep that in mind. Im strictly cash rent. My days of taking risk are over.
crsutton81
Member
Now is the time of the year for here around home to have either already made upcoming arrangements or be in communication about what is desired for the upcoming rent. Personally as a sharecropper, I had much rather have a in person meeting about it. It kills any confusion on either parties desires and sign any documents at that time if necessary. I have also seen it being handled like this that the landlord may have a lofty $ figure in mind, but not be practical. In these cases both sides were able to come to a mutual compromise. The last thing you want is to lack open communication on either side as to what's going on. If you're good to him, he should do a good job for you.
Lime is not an issue around here, FB isnt too far from me. They harvest limestone in the area. My ground averages a ph of 7.4, I would guess FB doesnt need much lime either.
Minnesota does not have any spelled out rules of farm leases, so if there is a disagreement it gets fought out on a case by case basis here. In general if you arent messing up a growing crop you can change tenants. Probably into March to decide here.....
Paul
Minnesota does not have any spelled out rules of farm leases, so if there is a disagreement it gets fought out on a case by case basis here. In general if you arent messing up a growing crop you can change tenants. Probably into March to decide here.....
Paul
Traditional Farmer
Well-known Member
- Location
- Virginia
If he wants to rent your land next year I'm surprised he hasn't said something to you already,maybe he knows the rent is too low and hopes you'll just renew the current agreement.
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