GFM Network News

Crop share is becoming less common in Alberta, but this method can be a good starting point for determining a cash rent.

The going rate isn’t necessarily what you should pay in rent

Don’t pay a rent based on rumoured rates in your area and factor in the productivity of specific fields

Reading Time: 2 minutes Many landlords set their land rent based on what other local landowners are charging, but that’s not always an equitable rate, says a provincial farm business management specialist. “Following this approach has pitfalls because the rate may not be reflective of the soil productivity on the farm, or there may be a difference between what […] Read more

Plowed soil in a field.

Farmers forced to accept high land rents despite low crop prices

Grain prices are way down, but it’s expected land rents will take awhile to follow suit

Reading Time: 3 minutes Crop prices have plunged, but land rents look like they’ll stay high for a while. “I know that there are guys around here who are renting land for way more than it’s worth,” said Kelly Burkhardt, a Wetaskiwin grain and cattle farmer who rents 450 of his 1,000 acres of cropland. “At the end of […] Read more

A pile of Canadian currency.

Land rent realities for 2014

Rental rates started an upward trend in early 2008, and peaked in 2013

Reading Time: 3 minutes The year 2014 could prove to be a tumultuous one for cropland rental rates. The fact that rental rates will likely soften should not be a surprise. Cropland rents are a function of productivity and price for the most part. Other factors that play a minor role include proximity to the tenant’s existing operation, field […] Read more