Re: Renting one acre, planting lavender, how much?

Posted by paul on April 04, 2007 at 10:41:46 from (66.44.132.154):

In Reply to: Renting one acre, planting lavender, how much? posted by BobReeves on April 04, 2007 at 04:26:47:

On a normal farm, such a deal is a real hassle. Fellow would want the acre cheap; lets the weeds grow up & contaminate the whole field; then have to spray around such a sensitive crop & require kid gloves working around it. Would never be worth it to the land owner, at 3x the regular rental......

As well, it can mess up any govt programs - under the right conditions, someone in the program could end up having to repay $300 or more for that acre to the govt, as well as a stack of papers....

In your case,if it sounds like waste land anyhow, you aren't out much anyhow.

The shares deal would probably work out the best for all, if everyone is honest about it. Hand weeding/ harvest/ possible processing labor is going to be the big cost, so regular 40% (landowner) / 60% deals for grains doesn't work out well. Probably closer to the 25% someone else mentioned? Allow him to figure out his cost/income & counter offer, if he has a lot of other expense we are not aware of. If he's got a $4000 gross with a lot of fertilizer & extreme labor costs, maybe 4% to you ends up being fair. I'd think it over & work with him on that. If you supply any labor, up it. Many times fertilizer & seed costs are also split in a typical 40/60% land rent - he may counter with such a plan.

Sounds like the equipment use might be an on-going 'issue' from a barrower-be. Might want to look up state average rental costs on that (a search on-line or at your extension office) and charge those per-hour or per-acre costs. Keeps the tractor use fair. Sometimes those costs look high, but maintaining a machine takes $$$$, and renters tend to let things go, so I'd not back down on these costs at all. Sooner let him use the acre for free - you aren't out anything it sounds like - and make sure your equipment isn't abused by charging enough for their use.

Yea, I'm way too detailed for one friend/neighbor borrowing one unused acre. :) Typically let the fellow have it for a case of beer & everyone is happy, no worries. :) Just tossing out some ways bigger operations do it, in case this grows into something. :)

--->Paul

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