Experience leasing your farm for extended period?

Abouttime · #1 09/07/07, 05:22 PM

Has anybody leased their farm, animals included for a year or more? If so, could you share your experiences and any pitfalls other than the obvious to be cautious of? Did your tenant find the benefit of the animals worth the price to maintain or did you suppliment for their care?

Thanks

MOgal · #2 09/07/07, 05:34 PM

We leased some land for pasture/hay to the same man for about 20 years, had a written contract, whole nine yards. I thought we had a good rapport with the "gentleman" but boy, was I wrong. The contract read that he could put up and move any fences he wanted, could lime, seed and fertilize at his own expense, take hay, etc., but he couldn't open to remove gravel and minerals and he couldn't harvest trees. Basically, he could do anything he chose that was within the law including hunting but couldn't sublet the land for any purpose. So at the end of the term, which had been in 5 year increments to allow him maximum benefit of his improvements, he opted to cut the fence wire into sections between each post then cut the posts down at ground level. Then he left the mess. We'd never had any idea he had such animosity for us since we lived out of state and didn't bother him or in any way interfere with his use of the land. This didn't include any outbuildings or animals, thank goodness. There is no telling what he would have done with/to either. I would only enter into a lease if I were still living in the area and could make periodic visits.

Bercado · #3 09/07/07, 05:42 PM

Quote:

Originally Posted by MOgal

We leased some land for pasture/hay to the same man for about 20 years, had a written contract, whole nine yards. I thought we had a good rapport with the "gentleman" but boy, was I wrong. The contract read that he could put up and move any fences he wanted, could lime, seed and fertilize at his own expense, take hay, etc., but he couldn't open to remove gravel and minerals and he couldn't harvest trees. Basically, he could do anything he chose that was within the law including hunting but couldn't sublet the land for any purpose. So at the end of the term, which had been in 5 year increments to allow him maximum benefit of his improvements, he opted to cut the fence wire into sections between each post then cut the posts down at ground level. Then he left the mess. We'd never had any idea he had such animosity for us since we lived out of state and didn't bother him or in any way interfere with his use of the land. This didn't include any outbuildings or animals, thank goodness. There is no telling what he would have done with/to either. I would only enter into a lease if I were still living in the area and could make periodic visits.

That sounds nuts. I have been involved with people who rent out land. They rented to friends of mine and all that was agreed upon was pasture and that was it. we rented the pasture for a fixed amount and that was all that could be done.

DaleK · #4 09/07/07, 07:20 PM

I'm on the other end, I rent land from others on terms varying from year-to-year up to 20 year leases. I would never want to lease out animals to someone else, too many things to go wrong, too many things to disagree about (breeding, health, vet bills, etc. etc.). For land, make sure you have updated soil tests so you have a baseline to measure future fertility from, then you can write into the agreement some sort of language so that the fertility at the end of the lease is similar to or better than what it is now. Then you need to cover what is and isn't included, fencing, etc.

mary,tx · #5 09/07/07, 08:00 PM

We are in our second year leasing pasture to a young couple to run their cattle. We have a written agreement. We have been very happy with them. Their cattle are all hornless and well behaved, and we enjoy seeing the new calves. The couple are very polite, even saying thank you, we really appreciate it, when we call them with bad news, like when the buzzards got a calf or a cow was found dead in the pond. (They also really appreciated it when we got their cattle back in after they went through the creek to the road.)

They pay for the whole year at the beginning of the lease year, their choice. They keep up the fences. We let them deduct for materials the first year.

I definitely think it is an advantage, for both the lessee and the lessor, for the owner to be on the property to watch things.

mary

Abouttime · #6 09/07/07, 08:13 PM

Thanks for the replies. For clarification-this would be for more than acreage with cattle. It would include a house, barn, gardens, dairy cows, pigs, poultry, etc ......a working homestead. Due to the emergency nature that necessitates the temporary move to assist family in another state, the only other option would be to find the livestock a new home, which is undesirable.
Thanks

Rocky Fields · #7 09/07/07, 08:53 PM

Hey.

Don't be so attached to the animals...you're letting them cloud your judgement. Sell the animals and lease the land to a neighbor farmer you know and trust. Greenhorns may screw things up where the animals would starve or get sick. It takes an experienced farmer to maintain the soil and animals properly.

RF

Alice In TX/MO · #8 09/08/07, 06:19 AM

We have had several pasture leases. The folks leasing the land NEVER fulfilled the terms of the lease as to keeping the weeds under control or maintaining the fence. Very discouraging.

RosewoodfarmVA · #9 09/08/07, 07:46 AM

Being a farmer in Southern Virginia, the condition of the soil in these parts is very poor, especially with regards to farmland that has been "tenanted" before. Most landowners think that renting out their land is an easy way to make money. For the farmer, by the time he gets your worn out land into productive shape he probably has 5 years and thousands of dollars invested into it just to start making a profit for himself.

I would never consider caretaking someone elses farm unless:
1. it will be free to me.
2. minimum of 5 years to recoop my investments in bringing the soil back to productive health.

My end of the agreement would be:
1. proper fertilization and replenishment of the soil.
2. proper care of the fencing and bushhogging.

I currently tend 20 acres of hay land that is free to me, with the condition that I fertilize it occasionally. It was worn out land, and the soil will take many years to get it back to normal. I can cut about 3 times as much hay per acre of our own land than I can per acre off that farm. I am actively improving it, and have impressed the owner with how much I have done to it. Needless to say on good years I make a little profit and on dry years like this one I actually lose money on it. No way would I pay rent for such land.

If I was you, I'd try to find someone who will care for it, rather than pay for it. Any smart farmer who truly cares for the soil will not be willing to pay you rent because he knows that by the time he fertilizes/limes, and maintains it, there will be no money extra out of the profit to pay for rent.

On the other hand, any farmer who will pay you money for the land will most likely be short term....In other words, he'll cut the hay and graze his cows without putting any soil amendments down, basically living off of the fertility already there, and then when the fields turn to broomstraw and weeds an the fences fall down, he'll say "goodby" to you and leave you with land that is wore out.

A farmer has a very small profit margin, and out of that he'll either pay you to rent the land (without caring for it) or else he'll pay to maintain the land (without any rent for you). Unless you have some incredible bottom land with deep topsoil that tests OK for npk, you won't find a good concientious farmer and still get good rent!

So...do you want the money more or someone who'll care for your land more?

BillHoo · #10 09/08/07, 07:33 PM

Quote:

Originally Posted by Rose

We have had several pasture leases. The folks leasing the land NEVER fulfilled the terms of the lease as to keeping the weeds under control or maintaining the fence. Very discouraging.

So, if they're not maintaining the fence, does that mean their animals roam free into the roads when there is a break?

Abouttime · #11 09/09/07, 05:18 AM

RosewoodFarm-I want somebody who will care for the animals more. I'm not trying to make money off the deal, but I have found that if somebody has an investment (even a small one like minimal rent on the house) they will care more.

Rocky-easier said then done-discarding emotional ties, it's not easy to replace the perfect dairy cows or the sow.

Of course bottom line, if you are needed elsewhere, then you make it happen regardless.

As this will be temporary, I was hoping to make it work and that somebody would have had some positive experiences as well as some warnings for pitfalls that could be avoided.

It seems that you could find a family that would like to live in a nice house, and have a ready made homestead for a limited amount of time!

Thanks for the replies.

wwubben · #12 09/09/07, 06:46 AM

Good farm ground in our area of iowa rents for $200 to $300 dollars an acre and the land must be maintained properly.I would not rent livestock except a breeding male for a short time.

chris30523 · #13 09/09/07, 06:53 AM

If You leased the whole thing I would be very careful who I leased to.It could work with the right people.Just remember no one will care for your things like you do.

RosewoodfarmVA · #14 09/11/07, 08:21 AM

AboutTime, my point was that anyone who will care for your land properly WILL have an incredible amount invested in it, just not in payments to you! Because someone who'll care for it will have to spend a lot of money to keep the land in shape. Now if you have the house to rent, why not rent the house to an individual (for money) and then find a local farmer to tend the land separately?