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Discussion Board - renting land

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3010JD

01-08-2007 07:25:11

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I have been working some land and using a neighbors barn for two years in exchange for upkeep on barn and some odd jobs around the house. I would like to have some kind of agreement in place for the use of the land and barn so everyone is on the same page. I am thinking of maybe 60/40. I have just put in new timothy seeding and can figure about what I can make off the hay. The barn is a 60x40 post and beam. Land is six acres that was sod. If we agree on an amount per year for maybe five years I would sleep better. I hate to do all the improvements and then loose the gound.

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FreeRanger

01-08-2007 09:46:04

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location, location in reply to 3010JD, 01-08-2007 07:25:11

He makes a good point. Small acres close to big city can be worth a lot of money while also being expensive to keep up without it turning to a jungle. If left alone, scrub tree grow which have to be removed with a dozer before development can occur.

Also where I live, land left un-farmed is taxed as recreational land (expensive=$5k to $10 per acre). Same land used for hay would be taxed as ag (cheap less than $2k per acre). So the incentive maybe reduced tax burden on the land owner.

Try comparing my bill for 24 acres to neighbors with 2 acres with similar housing. You will see why my wife lets me buy more haying equipment and livestock. We live 25 miles South of Madison Wisconsin but only 1/2 mile outside small town. Most small acres (less than 100) is going for $10,000/acre. Then these crazy city folks move out here and mow 5 acres every weekend. Nuts if you ask me....kill all wildlife and habitat...subject for different post....

I agree you should put something in writing BEFORE investing in seed.

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E.B. Haymakin'

01-08-2007 08:55:13

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Re: renting land in reply to 3010JD, 01-08-2007 07:25:11

It really depends on where you are, and if the property owner is reasonable. In my area land is getting scarce, hay is getting scarce, and more large tracts are owned by "investment groups". The owner should be able to recoup some money in the deal, but if you are small large amounts of money aren"t rolling in. Plus you ahve a huge investment in equipment, and labor. So, they should realize your use of their land is keeping it up, and the place up. That saves them thousands. Figure what you think you would make off the hay, and figure your costs. I have heard most businesses figure 10%-15% of their costs are acceptable for rent.Make an offer-good luck, I hope you will make it.

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