# Land Lease



## Glorita (Aug 16, 2013)

I am looking for advice on an equitable land lease. I own the land, about 100 acres and I use 5 acres for organic vegetable farming. I have someone who wants 20 acres to do hay and wants to use our hay barn to store his hay to sell in the winter. What is a fair amount and does anyone have an example lease contract?


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## AndyL (Mar 9, 2013)

Glorita, don't get discouraged you haven't gotten a reply. When someone with the info you're looking for sees this, you'll get a reply. Why not get him to make you an offer, and then post here and see what feedback you get. In my part $30-$40 an acre. Some even more for good hay ground. Don't have any idea about the barn nor the contract. Everything I have is verbal. Probably not such a great idea, but it's working so far. I'd like to see someones contract myself.

Good luck and welcome to HayTalk


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## Tim/South (Dec 12, 2011)

The condition of the hay field plays a role as does the condition and type of barn.

Is the field already established in hay? If so, is it a grass hay field or an alfalfa/grass field. Whether he has to plant, spray, build the soil to produce to capacity all play a role in what he is willing to pay or what you should expect to receive.

If the field is established and already in top quality hay then it has a higher value. He should see immediate profit.

If the field is going to produce marginal hay then he may be wasting his time, depends on supply and demand for marginal hay in the local.

If he has to plant/overseed, spray and fertilize then it will be longer before he sees a return on his investment.

Is he improving the value of the land? Is his work making the place look better (aesthetically)?

Would you have to pay someone to mow the field if he was not cutting and removing the material?

There are just so many variables, too many angles and points of view in placing a value on every aspect.

The Barn:

Is it a clear span modes type structure or and older farmstead type barn? Is he able to drive inside the barn to unload the hay?

Will he be storing hay from other places in the barn?

Having a place to store rain free hay is a big plus to any hay farmer, especially one who intends to sell hay.

Will he make square bales or rolls? (Some of that will depend on the quality of the hay harvested).

In our area a roll of hay is $5 more if stored inside and sold during the winter. That $5 is not all profit because the hay has to be moves into the barn and handled again when loaded and sold. Basically $2.50 to put in and the same to take out.

On the flip side, hay stored outside until sold can be discounted as much as $10 here.

Andy had a good idea. Let him make an offer and go from there.

I hope things work out. A good deal is not a good deal unless it is good for both sides.

And....Welcome to Hay Talk.


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## Teslan (Aug 20, 2011)

Also since you have an organic garden or farm will you allow him to spray the fields next to it or use commercial fertilizer.


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## somedevildawg (Jun 20, 2011)

Excellent responses to your ?. There are a lot of variables here so those need to be addressed...welcome to haytalk Glorita


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