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Ripley, Ontario Canada | The best way to calculate what you can pay for rent is to add up what it will cost you to grow the crop (and be realistic you have to pay for the machinery and it will break, and your time is worth something). Then take an average yield and average price, and figure out what you will make on average over 2 or 3 years. Take that average per year profit (hopefully) and that is the most you can pay. If that is not at the market rate, you either need to find a cheaper way to grow crops, explain to the landlord that this is what it costs to grow the crop this way, and you are going to treat the farm properly, or you don't rent and do something else with your time. There is absolutly no point working more land and not getting paid for your time. My banker told me I was wasting my education farming and to get a job at the local nuclear plant, she said you can still farm after work. I told her if I needed a full time job to support my farm, I wouldn't have the farm anymore and would enjoy the money from the job and have the weekends off. I don't know what she will say next summer when I go in with a cheque to pay off my mortgage with her when I move it to another bank since it will need to be renewed next summer. | |
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How do you calculate a fair cash rent?
