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Iowa | "Fair" is not the word , it is the "market". If you can't pay what others will, your farm will not grow. This is the harsh reality of renting. Econ 101. Sure, you might find a landowner or two who want "fair", but if your goal is to grow, then you absolutely have to find a way to compete with your neighbors who very well may have been born with silver spoons in their mouths. For me, my edge is with lots of livestock (livestock profits and cheap fertilizer in manure) and low machinery costs.
My answer to you is not flippant or sarcastic---this is how it works. Its the MARKET, not what is "fair". If you take years to come to this conclusion, you will spin your wheels while learning it. Realize it right now, figure out your competetive edge, and begin to grow. Unless Grandma or other relatives have plenty of land, this realization is your only path to growth. | |
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How do you calculate a fair cash rent?
