I inherited a farm and looking at all options on what to do with it. Can someone speak about the process of renting out land and how to decided what fair market rental value would be per acre? Also, is there sites that you can post land for rent? Appreciate any help.
Renting Tillable/Hunting Land
- Thread starter 2forISU
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I am on my iPad right now so I dint know how to post a link from it but if you google Iowa State cash rent survey that will get you a good start.
Have an attorney draft a simple lease for you, always important to get things in writing.
Where at? You'd be surprised by the number of farmers on here, might be able to find someone on here who would farm it or know someone who would.
Have an attorney draft a simple lease for you, always important to get things in writing.
Where at? You'd be surprised by the number of farmers on here, might be able to find someone on here who would farm it or know someone who would.
For tillable land, you should check with your county NRCS office as they have what the average is in your region. If you are going to lease it for hunting, check with a lawyer as Iowa law does not let someone who charges for hunting rights get off with no liability, as would a landowner who allowed hunting for free. You will have to have a good insurance policy.
Your county extension agent can help you with this stuff. On the web go to ISU ext. then type in land rents under topics and they have county averages. You could also try calling one of the big land management companies (hertz for an example) they might give you some advice but I'm sure they would prefer to manage it for you.
When considering renting out ground the highest bidder may not always be the best option for your farm. You may want to think about long term soil fertility, erosion control, and conservation and how they factor into your farm being treated. Dave Baker at the Beginning Farmer Center (877-232-1999) would be an excellent person to talk to regarding these types of issues. Sorry about the long answers and good luck with whatever you decide to do with it.
After you decide what to do post it on CF and then cyclone fans get 1st chance to rent it.:smile
just kidding good luck with your decisions.)
When considering renting out ground the highest bidder may not always be the best option for your farm. You may want to think about long term soil fertility, erosion control, and conservation and how they factor into your farm being treated. Dave Baker at the Beginning Farmer Center (877-232-1999) would be an excellent person to talk to regarding these types of issues. Sorry about the long answers and good luck with whatever you decide to do with it.
After you decide what to do post it on CF and then cyclone fans get 1st chance to rent it.:smile
just kidding good luck with your decisions.)
DO NOT use a farm management company. A good farmer can take care of most of what a farm manager would do and do it for free and be happy to do the work.
http://www.extension.iastate.edu/agdm/wholefarm/html/c2-10.html
Most farm management firms charge 8-12 % of the gross receipts. Most lending institutions have forms on rental ground. Good suggestions on here in regard to fertility and land stewardship. You can put anything you want in the lease for conditions. Also, ask neighbors and relatives for other suggestions and get it all in writing.
Check with your local county assessor to find out what the CSR (corn suitability rating) is for the ground. That will help determine what the rent should be. Seems to me that the info on land rents based on governmental agencies are always a little low. If someone is currently renting the ground, the same rent will carry over to the next year unless you notify them by Sept 1. Not sure if that applies when the ownership changes hands due to inheritance. Find an attorney who handles a lot of farm rental and they should be able to get you started.
The problem is I live on the east coast. The land is in 5 different counties throughout northern, southern and eastern Iowa.
Where is the farm at, I am always looking for land close to home.
If you have a good farmer, farming it now just talk and work with him about staying on it. If not open it up to bids and take the best offer, best price isn't always the best for the farm in the long run. I would just post it in a local paper, the Register, and Craigs list. Land contracts are straight forward, but you can get a lawyer involved also. A lawyer also knows people looking for land and who to send offers too.
Don't use a management company, they look after their interest first and there are few you can trust.
If you have a good farmer, farming it now just talk and work with him about staying on it. If not open it up to bids and take the best offer, best price isn't always the best for the farm in the long run. I would just post it in a local paper, the Register, and Craigs list. Land contracts are straight forward, but you can get a lawyer involved also. A lawyer also knows people looking for land and who to send offers too.
Don't use a management company, they look after their interest first and there are few you can trust.
It maybe the time to sell it. The price is good right now. If he just inherited it his taxes would be low for selling it and he could have cash on had to invest other places.
Let me add this. To be a good land owner you have to be willing to put money back into your farm and keep it up. If you are worried about the little things take time and talk to local ag dealers in the area the farms are at, they can tell you who does a good job with keeping up the land, and keeping it in shape. When you have a good farmer on you land there shouldn't be much you have to do except pay taxes and pay for some improvements very few years. Oh and collect the rent.
I will comment on the hunting part. Leasing/renting the "hunting part" of the land usually has to do with what the cover is and what kind of game there is on the land. Timber and deer hunting usually brings more money than pheasant hunting (unless it is loaded with birds and has great cover). I hunt birds on some land (mostly CRP) where I have an informal lease with the owner. It is good pheasant hunting (but not great) as Northern Iowa still has a few birds. I filled out a legal form that releases him from all liability of injuries etc. and I am the only one that gets to bird hunt that land. I pay him a fair price and I can only bring three other hunters (no more than 4 hunting at one time). I cannot hunt it during deer hunting as some other guys rent it for that. It is difficult to get premium prices as the bird population has decreased significantly over the years, where there is still good populations of deer and turkey.
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People lease hunting ground for pheasants in Iowa ... Interesting. I miss the days of stopping by the farm house and asking permission to walk the fence lines and terraces.
There are still some people that will let you hunt their land by knocking on their door, but it is getting more difficult. I think the days of stopping by farmhouses is passing by as smaller farms have disappeared and landowners sometimes don't even live in the area. It is hard to find private land to hunt as most of it has been tilled and planted due to corn prices. There is also very few fence roes with any cover anymore as well. Most of the farmers that let me hunt farm a lot of land, but only have smaller areas, such as buffer strips, as most of it is crops. I don't think bird hunting will recover anytime soon in Iowa as a lot of habitat has been lost.
I assume prices are broken down price per acre/per year, correct?
http://www.extension.iastate.edu/agdm/wholefarm/html/c2-10.html
http://www.extension.iastate.edu/agdm/wholefarm/html/c2-10.html
Yes, those rates are per acre per year. They have a high, medium, and low quality rental value for each county which is a more accurate way of looking at it.
Correct. Per year per acre. So if you have 160 acre piece and rent it for $250/acre the farmer owes you $40,000. All of my rents are 1/2 due March 1 and half due November 1.
