Posted by James22 on February 26, 2008 at 06:38:58 from (207.179.239.233):
In Reply to: Re: Cash crop rent posted by Keith in NW MO on February 26, 2008 at 05:40:20:
He certainly isn't my definition of a good renter. Assuming it made the mentioned yield averages last year and he is not a complete klutz at marketing, a killing was made last year which he apparently is unwilling to share with his landlord. Crop insurance is a way-of-life for renters unless they are very highly capitalized so why should the landlord take a hit if the the tentant doesn't want to protect himself? Rent should go up when prices are very profitable and will go down if prices fall, I don't see the reasoning for not raising the rent because prices might eventually fall. Assuming a conservative 140 bu acre/corn @ $4.50 bu that will gross this year $630/acre. My neighbor says it will cost him $360/acre to grow corn, which nets $270/acre. As a landlord I would expect at least half of that profit. Bottom line is that unless he learned to be more generous, I'd kick this tentant to the curb as soon as possible, or as Lewis Carroll's Alice in Wonderland's Red Queen said "off with his head".
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