# How much rent to pay



## BCFENCE (Jul 26, 2008)

Ive got a chance to rent another 80 acres of real good crop ground, Would like to drill it all into alfalfa/ orchard grass but would like to have some input on the ones of you that have done it. How did you set it up for long term lease and how much did you pay, Ive a good idea and im sure you pay what you would for grain but how about the long term.
THANKS THOMAS


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## swmnhay (Jun 13, 2008)

Have some rented on a 5yr lease.I have a couple clauses in it incase the farm would get sold or for some reason we terminated the lease.I would get reimbersed seed costs pro rated yr 2-5.Also would be reimbursed for any fall applyed fertilizer if I didn't hay it the next yr.Pd the going rent for corn/bean ground.


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## BCFENCE (Jul 26, 2008)

Thanks swm thats what i needed, Kinda thought thats how it might work but im the only big hay raiser around here, everyone does grain.
THOMAS


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## mlappin (Jun 25, 2009)

A five year lease is a bare minimun, I prefer a seven when I can get em.

I pay going row crop rates by the type of ground I'm renting. I also have in my contracts that at the end of the contract term I retain the right to meet any offers from third party's, it is also wrote in such a way that I have to be notified of any offers by third parties. This is a double redundancy here but was wrote in as a few landlords in the past have 'forgotten' one clause or another.

If it is a really nice piece of ground, I have offered to pay another 10-15 bucks an acre once the hay is established and has proven itself.


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## swmnhay (Jun 13, 2008)

Some Landlords do realize the benifits of alfalfa vs row crops.All the ground that I rent was offered to me for alfalfa production.

1 wouldn't grow decent beans.High PH and cysts.Farmer wants alfalfa in it to open up the ground and lower cyst counts.

2 needs the hay but doesn't have eq so I do on shares

3 Was retiring at 85 and after helping him fix his baler once (wiring problem) came back the next yr and told me to just rent it.

The rest we own and if I loose the rented ground so be it.After this yrs weather I'm not really interested in more ground.LOL


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## Heyhay..eh (Aug 7, 2009)

I have hayed on others land under a number of arrangements.

By the bail: Crop alfalfa/timothy was established and the land owner wanted out of haying. Paid by the bale made from the land. 4x5 bale for $7 each. Owner fertilized with his pig manure I just took bales and left the land clean about 120 a and good yielding crop. This was a year by year agreement without a contract/lease. Eventually he sold the farm and we all walked away. About 5 years on this field. No investment by me.

By the acre with standing hay: Paid $20/a and the cost of any fertilizer applied to the field. Had to keep the field clean. Year by year without lease. After 3 years he wanted to sell to his son so I move on. No investment by me.

Renting a "black" field from a neighbour, 25 a, @$300/year. No lease/contract. I am responsible for the crop and its maintenance.

Renting a "black" field 115a. Contract in place for 5 years which stipulates:
* Cost /acre = $15
* Duration of agreement.
* Right of first refusal at the end of contract (for renewal purposes)
* Reimbursement for crop if landowner sells and cannot secure a caveat from new owner.
Cost of crop is amortized over 5 years so with each passing year the owners buy out is reduced by 1/5th of the initial cost to zero when the contract ends. 
* What access the owner has to the land so he doesn't go playing on it.
* What we can't remove from the land (gravel, trees ...)
* What limitations we have to making drainage improvements.
* How we have to leave it when we allow the contract to terminate. In this case black unless the owner wants us to leave the crop.
* The ability to sublet, with approval, in the event that I cannot continue.

Grass on acreages: Some city folk live rural but commute to work. They have 20-60a and the let it out for the maintaining. Big pain because they play in it.

Crop share: Have done this with both standing hay and black field. Share inputs 1/3 him 2/3 me take crop 1/3 him 2/3 me. Usually I take all of the bales and give him market price for his 1/3.

Some where I have an electronic copy of the contract. If I can find it I would be happy to share it.

Take care


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## TBrown (Nov 27, 2008)

I would love to see a copy of that contract if you dont mind. we have been trying to come up with a better contract.


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## okhillbilly (Jun 18, 2009)

(heyhay..eh) Is that $15 per year? I also would like to see a copy of that contract if you could post it.


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## swmnhay (Jun 13, 2008)

HeyHay eh,So what kind of tonage do you get up there?How many cuttings?How much fert you put on?So what is your cost per ton?

Interesting different areas way different costs.Here land rent jumped last yr.The highest I heard was $358 acre at auction.Most 200-250.

Maybe I should move to Canada and rent some of that $15 ground.At least the fishing would be better.


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## hayray (Feb 23, 2009)

I have a hard time getting contracts for more then 3 years but would prefer longer. I also have stipulations in the contract about reimburssements for termination from sale of property and so forth. I hired a lawyer to help with my contracts. I am averaging paying around $50 per acre on most of my ground. It might be a little high but I want my land owners to feel like they are getting a fair price when corn goes sky high again and all the cash grain farmers are out hunting for more ground. My contract mentions the landlords rights and obligations and depreciable wear and tear on property, insurance, stipulations about grazing or farming, and also that all Generally Accepatable Agricultural Management Practices may be used at my discretion - this allows me to apply pesticides, herbicides, lime and fertilizers, and manure as I see fit within the boudaries of the laws.


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## Heyhay..eh (Aug 7, 2009)

Here is a copy of the Lease Agreement which may be expanded or contracted as required to meet the conditions specific to your situation. I think that you can cut & paste it into word or some other form of word processing software. I tried to attach it as a word doc but it was too large.

LAND LEASE AGREEMENT

BETWEEN:

Land Owner
(Landlords' name)

being the registered owners of the land described in Schedule "A".

of

Town
in the Province of Manitoba,

(the "Landlord")

- and -

Heyhay&#8230;eh
(Tenants' name)

of

Resident Town
in the Province of Manitoba,

(the "Tenant")

SECTION 1.00	DEFINITIONS

1.01	"Alterations and Improvements" means any and all fixtures, improvements, installations, alterations and additions made, erected or installed by or on behalf of the Tenant in or upon the Leased Lands with the exception of the Tenant's equipment and machinery;
1.02	"Leased Lands" means the agricultural lands identified in Schedule "A" hereto;
1.03	"Term" means the term specified in Section 3.01 hereof.
1.04 "Taxes" means all taxes, including (but not limited to) goods and services tax, real property tax and school tax, rates, duties, levies and assessments of any kind levied, imposed or assessed against the Leased Lands, any building thereon or any Alterations and Improvements made thereto, or with respect to the Tenant's use of the Leased Lands.
1.05	"Tenants" means the person stipulated as the tenant above or a member of his immediate family.

SECTION 2.00	DESCRIPTION OF ACCESS TO LEASED LAND

In consideration of the rent, covenants, promises and agreements contained in this Lease, the Landlord leases to the Tenant the farm lands and accesses as described in Schedule "A",

SECTION 3.00	DEMISE AND TERM, AS IS BASIS

3.01	The term of this Lease shall be Five (5) year(s) commencing on the 1st day of May, 2006, and ending on the 1st day of November, 2010.
3.02	The Tenant accepts the Leased Land on an "As Is", and "Where Is" basis and any Alterations and Improvements made, erected or installed during the Term, with the Landlord's prior written approval, shall be at the risk, cost and expense of the Tenant and to the entire satisfaction of the Landlord.

SECTION 4.00	ANNUAL RENTALS

4.01	The Tenant must pay annual rent (the "Rent") for the Lease to the Landlord in the amount of $1650.00:
(a)	to be paid in full on or before the end of September for each year of this Lease;
4.02	All Rent is payable to the Landlord at its address shown above.
SECTION 5.00	PAYMENT FROM GOVERNMENT AGENCY
5.01	In the event that any payment, subsidy or other reimbursement is made under any government agency, or any marketing agency in connection with grain production on the said Leased Land during the Term of this Lease, the payments identified with the Leased Land shall be paid to the Tenant unless otherwise agreed upon.

SECTION 6.00	USE OF LEASED LANDS

The Tenant covenants with the Landlord, that throughout the Term of the Lease it shall:
6.01	Crop and manage the land following good stewardship practices so as to maintain the land in a good condition. 
6.02	Use this Leased Land and premises for the purpose of crop production and the storage of that crop only, unless otherwise extended in writing by the Landlord.

6.03	Not remove any sand, gravel, clay, or topsoil and agree that the tenant has no rights whatsoever to valuable stone or other such substances existing on, or under the surface of the said Leased Land.
6.04	Not change the natural course of any waterways on the said Leased Land, or cut down trees growing upon the Leased Land, nor permit any other person to do so, without the written consent of the Landlord.
(a)	The Tenants may make modifications to the land for the purpose of enhancing the drainage.
6.05	Use all best efforts to rid the Leased Lands of noxious weeds and in this regard, the Tenant shall comply with all lawful orders imposed by the relevant municipal or local government district.
6.06	At no time allow or permit any liens, (including but not limited to builders' liens) to arise or be filed against any of the Leased Lands on account of any work, labour, services or materials supplied to or on behalf of the Tenant.
6.07	Allow the Landlord, to enter upon the Leased Lands at any time for the purpose of inspecting the Leased Lands, including any Alterations and Improvements thereon.

SECTION 7.00	STORAGE OF CROP

7.01	Crop storage shall be the sole responsibility of the Tenant.

SECTION 8.00	TAXES

8.01	Unless otherwise agreed upon, the payment of all Taxes on the Leased Land shall be paid by the Landlord.

SECTION 9.00	ALTERATIONS AND IMPROVEMENTS

9.01	Title to all Alterations and Improvements shall vest in the Landlord and no alterations and improvements shall be sold, removed, disposed of, or encumbered without the written consent of the Landlord.

SECTION 10.00	SUBLETTING

10.01	The Tenant shall not sublet, or assign this Lease, or any part thereof, or any interest therein without obtaining the prior written consent of the Landlord to the sublease or assignment. Upon any consent by the Landlord, the original Tenants remains liable for the remainder of the Term

SECTION 11.00	RENEWAL

11.01	The Term of this Lease may be extended by mutual agreement between the Landlord and Tenant for a further period upon the same terms and conditions as contained herein, except as otherwise agreed in writing by the parties executing a renewal statement.
(a)	The Tenant has first right of refusal with respect to the extension of this lease, which will allow the tenant to meet any offer made to the Landlord for the lease of said property at the termination of this lease.

SECTION 12.00	DEFAULT

12.01	The Tenant is in default under this Lease if:
(a)	The Rent or any part of the Rent is in arrears for thirty (30) days after the due date, whether or not the Landlord has made a demand for payment; or
(







The Tenant assigns or sublets the land without the Landlord's approval; or
(c)	The Tenant breaches any of the covenants of this Lease.

SECTION 13.00	TERMINATION

13.01	If the Tenant defaults in the payment of the Rent, or in the performance of any other of the Tenant's covenants under this Lease, and the default continues for thirty (30) days, the Landlord may give to the Tenant a notice in writing requiring the Tenant to remedy the default within a period of fifteen (15) days from the notice, and if the Tenant fails to remedy the default within the period of fifteen (15) days, the Landlord may:
(a)	Enter upon and take possession of the Leased Land or any portion thereof in the name of the Landlord and repossess and enjoy same, and the Term granted shall cease; or
(







Re-enter the Leased Land without terminating this Lease and the Tenant shall be liable for any actual loss of Rent which the Landlord may incur during the unexpired portion of the Term, provided that the Landlord shall take all reasonable steps to re-lease the Leased Land and to mitigate the Landlord's losses and damages.
13.02	The Tenant may terminate this Lease as of January 1st of any year during the Term provided that:
(a)	the Tenant gives the Landlord written notice of termination no later than December 1st of the previous year; and
(







the Tenant is not otherwise in default or in arrears in remitting any amount payable by the Tenant under this Lease, or in default with respect to any other covenant or undertaking contained in this Lease.
13.03	The Landlord may terminate this Lease as of January 1st of any year during the Term provided that:
(a)	the Landlord buys the hay crop from the Tenant for the cost of the inputs invested by the Tenant which shall be prorated over the term of this Lease and multiplied by the number of years remaining on the Lease.
(i) (Input Costs/5 years)* years remaining in the Lease

SECTION 14.00	YIELDING UP LANDS, RESTORATION

14.01	Upon the expiry of this Lease, the Tenant shall yield up the Leased Land, together with any Alterations and Improvements that the Tenant has elected to leave, in such condition that is consistent with good farm management, husbandry and conservation practices. Nothing herein amends or modifies the Tenant's obligations as set out in Section 6.00.

SECTION 15.00	ARBITRATION

15.01	Any disagreement which may arise between the contracting parties hereto shall, when a mutually satisfactory settlement cannot be reached, be submitted to arbitration. The arbitration authority may either be a single person mutually satisfactory to both parties or a board of three, one member to be proposed by each party and a third selected by the two as chosen. The recommendation of the arbitrator or arbitration board shall be accepted as final. The cost of arbitration will be split 50/50 between the Landlord and the Tenant.

SECTION 16.00	GENERAL

16.01	Time shall be of the essence of this Lease.
16.02	This document and the attached Schedule "A" contain the entire agreement between the parties. There are no undertakings, representations or promises express or implied, other than those contained in this Lease.
16.03	No amendment or change to, or modification of this Lease shall be valid unless it is in writing and signed by both parties.
16.04	This Lease shall be interpreted, performed and enforced in accordance with the laws of Manitoba.

The Parties to this Land Lease Agreement do hereby accept this Agreement subject to the conditions, restrictions and covenants set forth.

THIS AGREEMENT made in triplicate this ______ day of April, 2006.

SIGNED, SEALED, AND DELIVERED 
in the presence of:

(Landlord)

SIGNED, SEALED, AND DELIVERED 
in the presence of:

(Tenant)

SCHEDULE "A"

LEGAL DESCRIPTION OF LEASED LANDS

A.	PARCELS: 
1.	SE xy xx zE approximately 75 acres
2.	NW xy xx zE Approximately 40 acres

B.	TOTAL ACRES Approximately 115


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## Heyhay..eh (Aug 7, 2009)

The total acreage to be determined by the fertilized acres as noted by the counter on the spreader.(this sentence should go with the contract post right at the end. That post was too long so her is the rest to answer all of the questions asked.)

The input cost for field preparation seed and fertilizer ran at about 100.00/a.

Deep till
Disc
Harrow before seeding and after.

Seed 60% Alf/30% Tim/10% Orch. = 12#/a
Fert. 200#/a
Application $4.25/a

2 cuts at approx 3 tons/a except year 1 which was under a ton/a (cut in first year of planting, late August, 1 cut)

In 4th year alf is strong, orchard good and timothy just starting to become abundant.

No fert since first application as yield is still strong on this field.

Cost to make a 4x5 round bale landed on my property for outside storage is about $16.00 per. This takes into consideration all prorated costs for planting, lease cost/year, mowing, baling, twine & handling/transport. (All done in house).

Farm land in our area sells for about $1000/a but can be had for cheaper. In some cases that 1000/a might include some out buildings. In other regions of the province farm land might run around $700/a. The pressure on the land around the city is the commuters who buy 10-40a for city lot prices so 50-80 thousand.

Take care


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## nwfarmer (Jun 16, 2009)

Very interesting about different prices. I get $110 an acre for choice top farming ground. I pay for irrigation water of $20 an acre so basically getting $90 an acre. 20 miles away so not worth it for me to farm it. In this area it is also a 5 year contract in case there is a sale. Some prefer to share crop for 1/3 of the crop sale. In the area I live the farm gound isn't as good and it goes for $75 an acre and we still pay $20 an acre for water.


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## mlappin (Jun 25, 2009)

Heyhay..eh said:


> Farm land in our area sells for about $1000/a but can be had for cheaper. In some cases that 1000/a might include some out buildings. In other regions of the province farm land might run around $700/a. The pressure on the land around the city is the commuters who buy 10-40a for city lot prices so 50-80 thousand.
> 
> Take care


Wow, can't touch land around us for less than 4000 an acre. Thats land that usually needs alot more drainage as well. Very well drained land with a good production record gets around 6000 an acre in a hurry. Most of the time its sold off in 20 acre lots anyways for houses, ( our county requires 20 acres to build one house once you are out of city limits) and the potential buyers care less about the production or drainage as long as they can build a house. Course they plop that house down right square in the middle of that twenty as well so whats left to farm, is a royal pita.


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## BCFENCE (Jul 26, 2008)

My ground will cost between 150 and 180 an acre. We havent talked price since he asked me if i wanted it, I do some share croping with this guy but hes getting older and just wants to quit and let someone else have it. 
THOMAS


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## nwfarmer (Jun 16, 2009)

Irrigated farm land near Cody and Powell, WY sells for about $6500 to $7000 an acre. It is hard to start out in farming because you can't farm the land and make any money. As taxes go up more and more land here is getting subdivided. If you subdivide that land into 1 to 5 acre parcels the price goes up to about $25,000 an acre.


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## BCFENCE (Jul 26, 2008)

The cost of ground here if you want to buy it ranges from 7,000 to 12,000 acre for farm ground, kinda hard to buy and farm ground like that.
THOMAS


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## nwfarmer (Jun 16, 2009)

Eventually I think we will be importing food like we import fuel now


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## swmnhay (Jun 13, 2008)

Land here is mostly $4500-5800 for good ground.I don't think it would have ever got that high if it wasn't for the 1031 exchange money.Or outside investors.Alot of the larger farmers hooked up with a outside investor and than custom farm or rent it from the investor.I think its BS they call it business.I heard one owns 28,000 acres.Kinda makes it tough on the small farmers around here.


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