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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.
I had to go back and read this again to get in my head how the $45/ac came about. It was very decent of them to lower the rent that much because of drought, which is nobody's fault but is hard for you to deal with. Legally you don't have to increase your payment but to maintain a good working relationship and have the door open to continue renting if you want the land long term, I would go to them in person and ask to renew the contract at the price they are suggesting. They gave you a break on the last contract at 45. $54/ac still sounds like a fair price if you paid $65 for one term. If you compromise on that and they give you an extension of time that you know you have the land for a few more years seem like a win for everybody. I rented a majority of my land for 44 years and had some very long term and good relationships with landlords that spanned 30-40 years. Keeping those going involves some give and take and you don't always get everything you want but if it is good land and convenient for you maybe it's not the end of the world to give something up this time. But it is easy for me to spend your money :)

Rent in this area has backed off a little from the peak a few years ago.
 

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My first question would be if the rented land comes up for sale any time soon .
Have first rights for buying
how good is the land , do you make money or just spinning wheels .
so may question, determine rent value ,sounds like the guy is not the most popular one .
 

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I had to go back and read this again to get in my head how the $45/ac came about. It was very decent of them to lower the rent that much because of drought, which is nobody's fault but is hard for you to deal with. Legally you don't have to increase your payment but to maintain a good working relationship and have the door open to continue renting if you want the land long term, I would go to them in person and ask to renew the contract at the price they are suggesting. They gave you a break on the last contract at 45. $54/ac still sounds like a fair price if you paid $65 for one term. If you compromise on that and they give you an extension of time that you know you have the land for a few more years seem like a win for everybody. I rented a majority of my land for 44 years and had some very long term and good relationships with landlords that spanned 30-40 years. Keeping those going involves some give and take and you don't always get everything you want but if it is good land and convenient for you maybe it's not the end of the world to give something up this time. But it is easy for me to spend your money :)

Rent in this area has backed off a little from the peak a few years ago.
I had to re-read the thread too. I feel the same as Transaxial. I would pay the bonus if you want to keep the land. I have rented some of my land for 25 years and my dad had it for 15 years before me. It takes give and take on both sides to make that happen. This particular parcel of land has changed ownership through that time but we still were able to continue renting it. I guess it depends how much you want the acres.
 

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so when we stuck out their $65 rent it wasn't good faith? not sure what you're saying? We're expecting them to do the same and honour the negotiated contract as we did.
He's thinking he left to much on the table by dropping the rent $20. I think you're gonna have to throw him a little more if you want to keep him happy. Or if you're not comfortable with paying more be prepared to give it up. It does seem a little greasy that he's asking for more before the end of the term.
 

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Discussion Starter #48
My first question would be if the rented land comes up for sale any time soon .
Have first rights for buying
how good is the land , do you make money or just spinning wheels .
so may question, determine rent value ,sounds like the guy is not the most popular one .
It would be mid range stuff, not the best , but not the worst either.
 

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Discussion Starter #52
I had to go back and read this again to get in my head how the $45/ac came about. It was very decent of them to lower the rent that much because of drought, which is nobody's fault but is hard for you to deal with. Legally you don't have to increase your payment but to maintain a good working relationship and have the door open to continue renting if you want the land long term, I would go to them in person and ask to renew the contract at the price they are suggesting. They gave you a break on the last contract at 45. $54/ac still sounds like a fair price if you paid $65 for one term. If you compromise on that and they give you an extension of time that you know you have the land for a few more years seem like a win for everybody. I rented a majority of my land for 44 years and had some very long term and good relationships with landlords that spanned 30-40 years. Keeping those going involves some give and take and you don't always get everything you want but if it is good land and convenient for you maybe it's not the end of the world to give something up this time. But it is easy for me to spend your money :)

Rent in this area has backed off a little from the peak a few years ago.
thats the kicker this land is just across road from some of ours already. so that aspect plays into things also
 

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Bjtjjl, I’ve heard land south of you running in that $100 ac range. Pretty competitive area?
I haven’t heard of much that high, but could be some where it’s better land than here. Not sure $100 makes any money for the tenant anywhere in sask right now. If someone offered me that for my whole farm, for 5-10yrs, I know I wouldn’t be cold right now !
 

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Now in that first contract that was at $65 an acre, did you ask for the reduction or did they offer it? Either way, that is something that never happens here.How long have you been farming it? Are there any buildings or bins on it? Just wondering how much the taxes are on it, around here the taxes have gone up so much that $45 an acre doesn't leave a huge profit for the renter, they need money off it too.

Dad has rented and now we rent the same land from some people for 40 years and have never expected or asked for a price reduction, and there have been some very brutal years in there. Sounds like what they are asking for is still below the going rate for your area? If you don't pony up the money, I don't think you will be farming it for long. Put yourself in their shoes.
 

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When rent started to climb here 10 or so years ago I told my renter " I don't need to be the highest paid guy around I just don't want to find out I'm the lowest paid guy " .
 

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Discussion Starter #56
Now in that first contract that was at $65 an acre, did you ask for the reduction or did they offer it? Either way, that is something that never happens here.How long have you been farming it? Are there any buildings or bins on it? Just wondering how much the taxes are on it, around here the taxes have gone up so much that $45 an acre doesn't leave a huge profit for the renter, they need money off it too.

Dad has rented and now we rent the same land from some people for 40 years and have never expected or asked for a price reduction, and there have been some very brutal years in there. Sounds like what they are asking for is still below the going rate for your area? If you don't pony up the money, I don't think you will be farming it for long. Put yourself in their shoes.
our landlord wanted the rent to stay at $65, we were willing to walk away unless they came down to $45, they agreed to the renewal. theres no bins with the land. we've been farming it for 4 years now.
 

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Its a tough pill to swallow but I think I'd pony up the 20% and offer a new lease at that rate. Guessing that the $45/acre may be on the lower end of things...? You've got every right to say no and stick to your lease but the farm is probably gone after the lease is up. I'm guessing as others have posted that he probably has some bottom feeder jerking him off offering more money than you are paying, maybe 20% more if you catch my drift.

Rents don't back up much here, even if there is no money in it there is always someone willing to pay more so they can have more acres. Got ground not far from me that is average for the area to slightly below average rent for $350/acre this coming year, no money in that but he guy had a solid 10-15 other people after it. I'm not going to farm ground for nothing, I'm sure not going to do it to loose money.
 

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Not far enough south for two crops! Top quality ground still $10-12k/acre, average ground $8-9000/acre. Personally not sure why anyone would sell if its paid for but some want cash and not an asset. To each their own.
 
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