The Combine Forum banner

1 - 20 of 63 Posts

·
Registered
Joined
·
57 Posts
Discussion Starter #1
Hello everyone, Looking for some opinions on this. Our landlord sent a text message right after New Years, basically asking us for a 20% rent bonus for this year. This is our last year on contract after 2 years of drought / low commodity prices. Landlord says that because market conditions have improved and moisture levels are looking ok as of now that they feel this is reasonable. We farm in SW Sask. When i asked if we were still under contract at negotiated price, they agreed. When asked if they wanted to do an early renewal at a new negotiated price, they kind of dodged the question, but at same time stated they are happy with how things are going. So it seems to me they are dangling carrot in front of us. If we don't go ahead with bonus, we risk losing the acres, but sounds like they won't guarantee a renewal even if we do the bonus. We know that our rent will be going up if a negotiation happens, but are we supposed to grant their request out of the goodness of our hearts? We didn't squabble when the contract was in their favour. Really struggling with how to proceed on this one!!!
All opinions appreciated!

Thank you
 

·
Registered
Joined
·
57 Posts
Discussion Starter #3
Doubtful. our very first contract negotiation was not even a negotiation. They named price and didn't move off of it. Which at the time of $0.40 red lentils was ok, but the years that followed really made us cringe. At best over the course of our two contracts i think we might be ahead a bit, but not much.
 

·
Super Moderator
Joined
·
2,657 Posts
Our landlord sent a text message right after New Years, basically asking us for a 20% rent bonus for this year.

If we don't go ahead with bonus, we risk losing the acres, but sounds like they won't guarantee a renewal even if we do the bonus.
What a chickenshit method of of negotiating a contract!
Not really negotiating at all, my way or the highway type of person.
To alter an existing contract?

I’d walk.
 

·
Registered
Joined
·
2,514 Posts
Not sure why they would want a 20% bonus then.
Not sure what the right answer is. If you pay the bonus are you going to get to renew anyway?
 

·
Registered
Joined
·
57 Posts
Discussion Starter #6
Has a lot to do with the type of people they are and the area we farm in. Lots of BTO in our area. and this rented acreage works out to about 20% of what we seed. but at the end of the day we realize that if it doesn't make us money no point in keeping this going
 

·
Registered
Joined
·
766 Posts
Just curious what would average rent in your area would be per acre ? Some here at $ 115 / acre . My land is at $80 offered by renter trying to avoid the $115 .
 

·
Registered
Joined
·
57 Posts
Discussion Starter #10
I'm thinking in our area anywhere from $60 - 80. I've heard a few guys saying they're at $100 . avg yields for us would be 30 lentils, 50 durum, 40 canola.
 

·
Registered
Joined
·
57 Posts
Discussion Starter #11
i might be generous at 30 avg on red lentils, maybe more of high 20's for avg, same for durum mid 40's avg. depends when and if it rains!!
 

·
Registered
Joined
·
17 Posts
I would offer 10% bonus and a renegotiated lease going forward and hope you can meet somewhere in the middle. If no new lease going forward I would walk away.
It stinks to lose rented land but need to make sure your keeping enough $$ in your pocket.
 

·
Registered
Joined
·
57 Posts
Discussion Starter #14 (Edited)
We started off at $65. 2years of lower prices and 1 year of a 2 year drought got us a renewal at $45. so 1 year left at $45. If i remember correctly ,$65 at the time was high for our area. Now $45 is prob on low end also. I am totally willing to entertain the bonus if we can secure an extension. without the extension though i think the we run this upcoming season out and see where things shake out.
 

·
Registered
Joined
·
3,058 Posts
I would text him back and agree to paying the extra 20% bonus for this coming crop year IF in return he also agrees to refunding 5% for each of the 5 years due to your payments in full and on time as a bonus since you've stood by your part of the contract agreement.

That sounds better then a text that states what you really think of him and the stunt he is trying to guilt you into.

I see there is more to the equation then you first explained so its different then first met the eye.
 

·
Premium Member
Joined
·
172 Posts
Bah I can’t see rent going up anyplace. Last time I looked it was a **** year for everybody. I don’t see what the big deal is losing rented land. If I can’t make money on it there’s no sense renting it
 

·
Registered
Joined
·
587 Posts
Draw your line in the sand. Them doing that with a year left of contract is BS assuming you both signed a contract. I would use this opportunity to negotiate the next contract and cut out any confusion. You may lose land, but If you take the high road and don't talk trash these specific landlords some other neighbors and landlords will hopefully see that and you could benefit down the road.

I have had to walk away from land a few times. Sometimes it goes to a BTO others the landlords are caught with their pants down and come back with a way better attitude. You can either gain or lose respect with how you handle these situations. Hopefully it isn't relatives...
 

·
Premium Member
Joined
·
168 Posts
By your latest post they were willing to lower the lease when things got tough, so for them to ask for a bonus if things have turned around maybe isn’t fair in the middle of the lease, but understandable. Sounds like they are only wanting $9 per acre bonus, seems like a small price to pay to keep your foot in the door and on the good side of the landlords. Seems like you must have a good relationship with them, I’d keep it that way for $9 per acre. Just my thoughts..............
 

·
Registered
Joined
·
57 Posts
Discussion Starter #20
i was going to write a post after the last one about how its only $10 that they're asking and in the grand scheme of things isn't outrageous. But at the same time every dollar counts!!
 
1 - 20 of 63 Posts
Top