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Millington, MI | I've been farming for little over a decade but I'm just now having my first experiences with renting ground (from people that aren't family) and I have 2 questions.
1) I have a fixed per acre rate with a land owner and this year I decided to give them a bonus. The yeild was good and I thought it seems like a way to maintain a good relationship with them. They're older and I already plow their driveway in the winter and little things like that. The bonus was about 5% over what the agreed upon rent stipulates in the contract.
Is this a waste of money, or a reasonable amount? What is your guys experience?
2) I have a chance to rent 80 acres from another neighbor that had been previously rented by another farmer for the last 10 years. That farmer tiled the ground in exchange for the 10 year contract, and I'm assuming would like to continue renting it. The land owner passed away, and her children inherited the land. They approached me and asked if i would be interested it renting it.
I do not want to overstep and mess up someone else's situation. But at the same time, I'm not sticking my nose in, they approached me. As it stands now, I told the land owners that I'd give them a bid what I think is fair and that I can afford, and let the chips fall where they may. My grandpa is saying I shouldn't "run the price up" on another guy, which I don't want to do. But I'm not sure how else I could handle it.
We're a small community, so I really want to make sure to act in a fair respectful way.
Any advice is appreciated | |
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Land rent etiquette
