Re: Biggest farming issue???

Posted by 2002sliverado on February 08, 2018 at 09:26:07 from (216.16.75.34):

In Reply to: Biggest farming issue??? posted by JL Ray on February 08, 2018 at 04:27:54:

I work a regular full time job in town, but I am a "weekend warrior" on the family farm. A long time family friend of mine had a half section of great farm ground and had asked me if I wanted to rent it some years ago. I respectfully declined at the time, because I had to commit a career change. Our friend had always told me that when the time came I wanted to rent it, it was mine. Our friend died, and a sibling ended up inheriting the land. This sibling knows nothing about farming, and I am tapped into for my knowledge. I have been asked the question a couple times if I was interested in renting it. I have communicated that when I am done with my career, and want to start my early retirement job in farming, I will be interested. I know what the cash rent is at this time, and for the most part, all I can see is "red ink." I was asked by the heir, why would the tenant be willing to come up with high cash rent? I responded by informing him, the tenant does have, our could have, a pretty substantial "war chest" of money built up from the lead up to the peak in 2012 and from a year or two after, and at this time, this tenant, who had lost some strategic pieces of farm ground around that time is willing to lose some, or break even at best, to maintain control of this farm. I also shared the tenant has invested into a swine barn nearby, where the manure comes from for fertilizing the crops. I concluded by telling, the heir, if I were to take on this tract, not have access to the manure, and paid the high cash rent, at best and under high yield conditions, I would break even or make a small amount, but under less than ideal weather conditions and reduced yields, I would lose money, and I am not interested in "bleeding money" now. My last comment was, "When your tenant can no longer afford to pay this ridiculous rent, I am willing to talk. I am fine seeing your tenant lose money, and you maintaining your income at this level, but realize, you are going to see this level of income drop sometime soon."

Replies:

• Re: Biggest farming issue??? NY 986 09:44:10 02/08/18 (1)
  • Re: Biggest farming issue??? 2002sliverado 14:24:01 02/09/18 (0)

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