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How to figure cash rents with this "new plateau"
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Pat H
Posted 10/29/2007 13:49 (#228627)
Subject: How to figure cash rents with this "new plateau"


We have been doing unsolicited bonuses this year and will likely bump the base rent modestly with a bonus written into the contract (paid if prices stay high). Is everyone else just paying $350 on whatever ground and calling it a good thing? What kind of land is commanding these rents? Is everyone yielding 200bpa+ and will for the next 10 years?

A lot of my ground needs tile (made an almost 40 bushel difference this year drained vs undrained) and I'm considering offering even more rent if we can get tiling done. If the high prices stay high for a few years this might finally be the environment we needed to get the tile done. It will mean high rents for me, but yield gain/stability should cover that.

Any thoughts?

Thanks, Pat




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