|
Baldwin City, KS | Tommy, I agree with you 110%. I shouldn't have used the word fair, since I know well that nothing is fair in business, especially production agriculture. I'm 30. I started farming with my younger brother 3 years ago. My parents pretty much gave up on farming 15 years ago, but not us kids. I do compete with the silver spoons, but try not to get mad about it because it isn't productive.
Basically, I more than likely will get a shot at renting another farm close to our headquarters. I already rent some ground from this guy. It contains pasture, hay, and tillable. He wants a set amount per acre across the board. After doing some figuring, the tillable comes out being pretty high for what has been typical of our area. The fact is, I really don't know how those typical rents were ever figured. Maybe the price isn't that bad after all if I evaluate how I can have a competitive edge as you pointed out. Every farm is different. Our growing operation is backed by my brother's shift job and my custom fencing business. Still, I like to see the farm pull it's own weight. I think you're right, if I just do what is typical, I won't be doing a whole lot of growing. Thanks for the pointer. | |
|
How do you calculate a fair cash rent?
