I think you're being fair with the landowner, the fact that you feel bad about her having to deal with the ramifications of her decision says a lot about your character. She however made some decisions that turned out to be poor ones, she needs to live with those decisions. I'd say work with her, be open about how much time and money you are spending to maintain or improve her property. I think you're right on the price now that the farm has been de-valued. Go for a long term contract with her but also sit down with her and have her identify what is important to HER in the care and repair of the farm. Can she afford to take less rent and have you build back up what has been run down? Stretching out the repairs over 5 or 10 years might make the bitter pill she is swallowing a little easier. I'd go for a longer contract and identify milestones for things to be repaired and rates to go back up as things are returned to the previous condition. Also if you have a good year it might not hurt to throw her a thing or two off her list & buy some good will. If you do fix her problems she might be less willing to look somewhere else to rent, make her understand your are in this together and instill a partner attitude in your relationship.
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Today's Featured Article - Recollections of a John Deere GP - by Charlie Cook. I grew up on my dad's 280 acre general farm in Western Michigan. Dad's only tractor when I was very young was the old GP. My first recollection of this tractor was when dad allowed my brother and myself to ride on the tractor with him driving. One of us would sit on the left fender (away from the clutch) and other would sit on the gas tank and hold onto the crankcase breather pipe.
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