Do Any Farmers Actually Pay Their Land Rent On Time?

[Industrial Toys]

Just curious, what are peoples experience with renting out their land. Do they have trouble getting paid?

Is there something about land as opposed to for instance a House, where there is a mind set that it's not that important to pay your rent on time?

Some farmers seem to insist on paying after the farming year, and they have the proceeds (hopefully) from the crop. I'm beginning to wonder if it shouldn't be paid in advance.

 

[Big Barn]

IF you've been collecting at the END of the crop year and having trouble, change your strategy and insist on payment in advance. You will have nothing to lose. My parents ALWAYS paid in advance for rented lands.

If the "farmer" can't afford to agree to those terms he shouldn't be farming. JMHO

 

[kf4uda]

We have a family farm that we rent a portion of to a row crop farmer. We have never had a problem being paid. He pays when he sells his crop usually sometime in November. If you are having a continual problem, I would replace the farmer or as others have said change the terms to advance payment.

 

[Industrial Toys]

I know, it's a touchy subject. I would not want to be a cash-cropper for love nor money. I could not handle the stress. And in a sense, would have some difficulty accepting rent if it were a bust year. But hey, that's the business they chose. And they don't share any excess profits in good years.

We even tried for an earlier payment date and were told that would not work as the revenue wouldn't be in then. And IF it were an arrangement for an in-advance payment, you could wait and wait for a farmer that doesn't show up and loose the crop year.

 

[Budweiser John]

I rent 40 acres of my farm. Over the years, I have had a tenet from **** who could never pay the rent on time and now have a professional full time second generation dairy farmer who actually made the last rent payment two weeks early.
Over the years, I have learned that hand shakes are neighborly but written contracts signed by both parties hold water and are leagelly enforceable.
My rental contract clearly states the rent is paid in advance and there is no grace period for late payments.
Late payments, if any, are subject to interest charges from the payment due date.
Rental period is for three crop seasons. Renewals are negotiated at current rental rates and the lease clearly states the lease is for crop production only, and not for hunting or other recorational purposes.
Should the tenant elect not to Renew the lease, the land shall be left fitted and seeded to a grass cover crop.
In the case of a single proprietor i'de also get the spouses signature on the lease. In the case of a LLC OR corporation include all the principals listed on the articals of incorporation.
Anyone who balks at signing a lease with these caviotes no doubt will leave you chasing the dollars sooner or later.
B. John

 

[hawkeye08]

We get paid after crop is off in fall. Farmer comes by and pays. I mentioned a couple years ago that he was farming more than he was paying and not paying competitive rate.. next year, he paid more (had checked the acreage, adjusted and increased amount per acre). Does pretty well considering he has 25-30 land owners he deals with.

 

[Industrial Toys]

Wow! It seemed a stretch to even request a payment date. That wasn't even on the original contract. But without some stipulation as to what happens if the dead line is missed, it's not complete, I guess.

Thanks for the insights.

 

[stuckmotor]

Some renters are just seem to think they don't have to pay. That goes for houses too. My mother sold a rental house because of hard luck stories that kept coming up when the rent was due.

 

[oldnslo]

We used to rent land on shares. In a poor year you both lost and a good year you both won. This was also 40 years ago so time have changed considerable.

A good friend of mine asks for half up front and the balance in the fall. This works well since half covers the tax bill which around here is due in July.

 

[bunyip]

We do a bit of spelling for racehorses and trainers are notorious for not paying so it's up front or the gate stays locked.
Had a rental property and never got paid on time, won't do that again, we have some property in the snow that we lease to a consortium, the owner tries to negotiate every year over a couple of bottles of good red wine, my capacity for fine red far exceeds his and we don't budge despite his pleas of poverty and a new Porsche parked outside the venue (his not mine).
He always calls a couple of days later and tells me that I knoweth not my Father.