Garden Rent

I have this 10 acres of property that is pretty good soil. How much should I be getting for cash rent from one Asian family that rents the whole parcel. I am just south of the twin cities and I also till it for them. It is development property and their is no way the garden rent even comes close to paying the taxes.

Whew, that's a tough one. Agland/ garden land won't ever pay developmental prop taxes for sure.

Does this qualify for Greenacres tsx abatement, farming it can get you a kickback on that if ththe ecconomy has put the brakes on development for several years? I don't know the details on it, but worth looking into. The tax break can be more than the rent ever will be.

'Garden' land by a city is so different than 'crop' land out in the country, I just don't know what to say on the value. Small parcel like that would be worth less out in the country, might not apply for a garden deal. Trees around it decrease the farm value, again might not apply for garden. So many variables.

Will they get a longer term lease, 3 years, so they can set up fertility better over a multi-year deal, then it should be worth more to them. If you are year to year, then probably worth less. If you can yank it away on a moment's notice for building, then they are doing you a favor to keep the weeds down, not much value at all.

Garden land can be far more profitable per acre than farm land, but it's all in the labor & effort involved, your land is probably poorer so worth less. An odd contradiction.

Just random thoughts.

--->Paul

I was just reading a business plan summary for lettuce the rent for the year per acre was $1300 year or $110 a month. The average farm size was 1200 acres. The tenant thanks to the climate is able to get at least two planting per acre.

If your tenants are using it for 6 months then you disk it I'd cover the fuel cost + a nominal acre per month. The lettuce yield in the business plan I was reading was 350-450 cartons per acre. 24 heads per carton. If your tenants are hobby farmers their yield is probably a lot lower and maturing with every other local farmers crop.
Go with makes you feel comfortable. $25-$50 per acre per month in the field. If the tenants crops bring in wildlife that improves hunting I'd knock a few dollars off the monthly rent.

They had me assessed as residential non homestead. By having it farmed, I got it back to ag non homestead. It dropped the taxes around 2k per year. The rent is about the same as the tax reduction. What could I expect from a real farmer in rent. That way I wouldn't have to plow and disk, etc. The soil is good black dirt with about a foot and a half of clay under it so it holds moisture well. I am just wondering if it would be comparable to get a local farmer to take it instead for next year. But then what would my excuse be for having my tractor?

You need the tractor to drive around the field and make sure they are farming it to your satisfaction. This has to be done no matter who is running it. Also what if the renter wants to give you some of the produce? How you going to hall it back to the house without a tractor? Questioning why you need a tractor is just foolish talk.

Kind of what I think too.