In the News - May 2008
Homespun advice from a veteran county agent
'You said you'd fix that fence'
BENTONVILLE, Ark. - I'd rather take a beating than get into discussions on
the pricing of hay land and pasture rental property. There seems to be a 50-50,
and sometimes a 100 percent chance that someone isn't 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 single seed 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 regards to the use of the land some,
unfortunately, find themselves involved in uncomfortable situations.
Farmland rental is a two-way 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 number one cause of most
problems. No communication sets the stage for disaster. Til' next week!
For more information about farmland agreements, contact your county extension
agent. The Cooperative Extension Service is part of the U of A Division of
Agriculture.
May 30, 2008
By: Robert Seay
Benton County Extension Agent Staff Chair
Media Contact: Lamar James
Extension Communications Specialist
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2187 or (501) 753-0207
ljames@uaex.edu
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