Around the Farm : Get it in writing
Posted on Sunday, May 11, 2008
URL: http://www.nwanews.com/bcdr/Agriculture/61688/
I’d rather take a beating than get into discussions on the pricing of hayland and pasture rental property. There seems to be a 50-50, and sometimes a 100-percent, chance that someone is not going to be happy.
Case in point: In early spring, several years ago, the market outlook for fescue seed appeared to be going through the roof. I was contacted by a number of land owners who, overnight, wanted to break lease agreements. The math indicated much greater income potential from a singleseed harvest than from 12 months of rent income. Some situations were made worse when renters bragged of the income potential and landowners were made to feel like suckers.
It usually isn’t difficult to come up with a standard land rental rate for most locations. However, in northwest Arkansas this appears to be a moving target. The concern shared by many landowners is simply to receive sufficient funds to cover annual expenses (property tax, etc. ), while also maintaining the original condition of their fields, fences and facilities.
One situation common in our part of the country is the lack of a written agreement. There is an old saying that, “ A man’s word is his bond. ” I would quickly add, “ Except when it comes to some rental agreements !”
The law of averages indicates that owners of “ rentable land” are elderly women. At the loss of her spouse, the learning curve became pretty steep. In looking for someone to trust in regard to the use of the land some, unfortunately, find themselves involved in uncomfortable situations.
Farmland rental is a twoway street, requiring a basic understanding by the landowner of the income and expense potential of their property. I offer the same advice to landowners and renters, which is, a simple written agreement will provide an avenue to remedy most situations should the need arise.
Under the current burden of excessive agricultural expenses, an open discussion needs to be maintained should the agreement need to be altered. Poor communication, as I’ve stated on many occasions, is the No. 1 cause of most problems. No communication sets the stage for disaster. Til ’ next week !
• • • Robert L. Seay is a county extension agent with the University of Arkansas ’ Cooperative Extension Services. Call him at (479 ) 271-1060 or e-mail rseay @ uaex. edu.