36 March 26, 2015 2015 Logan County Farm Outlook Magazine Lincoln Daily News.com
But, if a landowner has 500 acres rented at $250/
acre, that landowner is going to gross $125,000 in
a year. Again there is property tax to consider as
well as land maintenance, but could that landlord
afford to negotiate a lower rent, even temporarily?
Possibly so.
Before a tenant begins a negotiation, it is important
to know the landlord and understand his or her
circumstances.
In the spirit of the new 2015 State of Illinois
mantra, we all need to sacrifice in order to get
through this. Knowing ahead of time, what
position the landlord might be in to make sacrifices,
is going to be important.
For the tenant, knowing the true cost of farming,
and determining what is needed to survive, is going
to be the key to the negotiation. Everyone wants to
be profitable, but now is not the time to be greedy.
This summer, while the corn is growing, take time
to sit down and take a seriously hard look at what
you have to do to survive. While the 2015 lease
year has already begun for most, 2016 will be here
before anyone knows it. Being able to present your
case with facts and figures is going to be to your
advantage with the landlord.
Figure everything except the land cost. For this
exercise DO sweat the small stuff. Throw every
imaginable expenditure into the final figure
from the cost of seed and fertilizer to equipment
maintenance and repair, to the monthly phone usage
related to the farm and your labor. Then take a red
ink pen to it.
If you are going to ask the landlord to make a
sacrifice, show him or her that you too are going to
sacrifice. Trim that number as much as you dare.
When it is time to face the landlord, lay it all
out there. Your parents may have taught you to
keep your business close to the cuff, and never
tell anyone all the facts. But in years such as
these, it may become an essential practice. In
many cases, in Logan County especially, farm
ground is owned by well-informed landlords who
know the local farming environment. Be straight
forward with those who know the score; it adds
creditability. It will do the same when dealing with
those landlords who don’t know farming. Giving
them a straightforward education on what you are
going through is going to make it easier for them
to understand why you are asking them to sacrifice.
In both scenarios, it will also demonstrate that as a
young farmer, you are well informed and on top of
your business.
Finally, when the landlord agrees to the reduction in
rent, don’t forget him or her when things get better.
A prime example of ethical farming is to share the
wealth when no one is expecting it. You are the
one asking for the reduction, so when things do get
better, doesn’t it stand to reason that you should be
the one offering a greater benefit to your landlord?
We would encourage everyone to read a November
2011 article from Corn and Soybean Digest; “Lease
with integrity | How to foster trust, fairness in
landlord-tenant relationships.”
integrity-how-foster-trust-fairness-landlord-tenant-
relationships
Story by Nila Smith
