Posted by NY 986 on February 17, 2010 at 07:22:19 from (166.217.61.39):
In Reply to: Re: Land posted by Kevin Schmidt on February 17, 2010 at 06:04:04:
I worry about the long term effect of this. I don't think the commodity prices we have seen in the past year and half will sustain going into the future. Forward contracting will help put off the issue longer than marketing after the crop has come in. Taxes are bad enough here without the assessor thinking he needs to double or triple some values based on some recent sales. A lot of guys need revenue bad enough from their farming operations that they can't afford to get in a tiff with landlords. A landlord has a right to charge whatever they feel but most farmers have to make an offer based on what the market tells them their net revenue per acre is. It's not unheard off for a landlord to take his ground off the rental market if he thinks he is not getting enough. Especially if he has the money to cover taxes from another source. I don't have the financial position to keep competitors away by bidding things up beyond what rent will reasonably cashflow for.
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