leasing land

Slugmar · #1 09/11/08, 02:06 PM

I havent looked at it as of yet. but a real estate agent has 32 acres up for sale that hasnt sold in awhile we offered to lease it to cut hay off of next year. was wondering how much do you think 32 acres that can be irrigated is worth ?

I know the ground hasnt been kept up so there going to be alot of start up work to get the fields to producing good quality hay. probaly some black berry clearing a ditch work if not even some check work.

I know in acouple years down the road it can produce alot of hay but right now im not for sure....

So just with the little info I have so far what do you think I should offer them.

Hopefully I can take some pictures and give you a little more info.

THETOOLMAN · #2 09/11/08, 02:34 PM

I know a guy that worked o 112 acres & got the briers out made it really nice bermuda hay. he hayed it 4 years & the guy stopped the lease and started selling the hay himself. so, I would put something in writing that you should get the cost of fertalizer & spraying & all work to improve the hay lease OFF your payments.
or you will (might) loose out

rambler · #3 09/11/08, 11:18 PM

To echo the other fella, sounds like you will be doing a lot of work to a property that could, possibly, be sold the following month......

You have a lot of risk involved in this, be sure to protect all the expense you have to put into this.

It is not uncommon to hear of folks that put a lot of work into clearing & improving land, and then the landowner pulls the lease & takes advantage of all the work done before you have a chance to.

Be careful.

--->Paul

texican · #4 09/11/08, 11:39 PM

I'd pay them, by cutting the hay, and bushhogging the rest of the property. If someone doesn't cut the hay each year, the weeds will take it over, and then saplings, and then the hay meadow is gone.

I'd take it day by day... I'd only fertilize if I knew I was going to get the next couple of cuttings. If I was concerned, I'd cut it unfertilized... I know several people that have developed a hay meadow, and sank fertilizer and time in a meadow, the land sold, and they lost thousands in invested fertilizer...

Don't know about your area, but Craigslist has several offers a day of people wanting their hay cut... and the hay is free... just cut it get it out of the pasture.

Tiffin · #5 09/12/08, 07:01 AM

Like everyone said be cautious and get it in writing for length and cost of leasing. We lease 60 acres to a local farmer who puts most of it in corn and chops or bales the rest which has some nice grass and alfalfa. The gentleman's agreement was $20 per acre for 5 years. But, in actuality he gives us 1,000 or so bales of hay for our cows a year which really amounts to much more than $20 depending on going rate of hay. It works for us. I'm sure this will continue for many years. We have heard of horror stories as mentioned above.