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| I'm dealing with a neighbor on some hay ground and we're trying to come up with a rent that's fair to both of us. I usually like to cash rent, but the explanation is coming.
It's highly variable ground, three small patches around 30 acres total +/-. Roughly 18 of it is pretty decent sand (black sand we call it here), the other 12 are in two small fields and both are pretty sandy. It's established alfalfa/grass that I seeded for them two years ago. It's a long story, but they had two different guys that wanted to rent it in the past two years. Both times, they cut the hay but didn't pay up and got booted off. They owner has no idea what the production was.
What I'm looking for are ideas on a fair payment for the hay. I need it for feed, so I'm trying to keep costs down as much as possible. Problem is neither one of us know how much it will produce, so a cash rent is pretty much out of the question.
Anyone work out a deal that pays based on actual production?? Make it on shares and buy his half? What would be the fairest to both if neither one knows what it will produce??
It's close to being ready to cut and I'm guessing the 1st cutting will make around 1-1/2 tons from the look of it. Here, I figure half of the yearly production comes off in the 1st cut, so a WAG is that it MAY make 3ton.
Ideas, anyone??
Dave | |
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??? on fair rent for hay ground
