Posted by Nathan (SD) on March 24, 2014 at 11:25:18 from (75.102.183.211):
In Reply to: More on Cash Rents posted by Eldon (WA) on March 23, 2014 at 10:07:47:
You can look at it a different way. You are getting around 18-20% ROI. Anything else you got paying that good?
That is rough country down there. Without 20 years of dairy manure would that soil be in the condition it is today to command a higher rent?
To me it looks like yeah he is getting a bit of a deal but you aren't getting robbed. I would push him to $70 over time. The average between 100 bpa and 40 bpa is 70 bpa. We have land like that up here also that has guys paying more but it is not sustainable at current prices. I see alot of it going back to pasture with current pasture rates.
Being from a big family just makes it that much harder. Too many opinions between people that when strung out that far in age aren't that well connected.
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