Soybeans! (and farmers)

Friends -

We’ve just acquired our 11th mobile home park (woo hoo!). This one is in Ohio, and comes with approximately five acres of additional land that has been leased-out to a soybean farmer. I have no experience with farming tenants; I do not know what is fair to charge for farmland, or even where to go to find other soybean farmers to get a competitive bid to lease our land.

Any thoughts appreciated,

-jl-


Probably somewhere around 100-$200 an acre. The local market and yields will dictate that.

Keep in mind that your timing is super critical. Tick off your current “tenant” and he bolts, you may not find a replacement in time for the growing season.

Really 5 acres to a farmer is like a mhp with 2 sites. You will not create any real interest since a 24 row planter will maybe make 2 rounds and be finished. Place an ad on craigslist and ask for bids and have an ending date to decide who you want to work with. We use sign leases on some farms and hand shakes on other farms.

Congrats on your latest Park Jefferson.

I don’t know about farming either, so if was in your shoes would consider:

  1. Is there an alternative best use for the property, or potential to subdivide (e.g. frontage for retail and keep back for farming)?
  2. Is there possibility / opportunity to develop it into additional pads at a later time?
  3. Would it be better to sell it and pay down the loan?

Looks like “average” Western Ohio crop land is renting for about $200/acre in 2014-15. With tenants kids playing in the crops and if it’s not contiguous with existing acres so they can easily farm it, expect less. $150-175/A would be better than maintaining the land yourself. Here is a link to an OSU paper on 2013-2014 rent and land values. [WESTERN OHIO CROPLAND VALUES AND CASH RENTS 2013-2014][1]
[1]: http://ohioline.osu.edu/factsheet/AEDE-15-14

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Congrats on the new purchase! If you need backup/basic data, this may help - recent comps for farmland cash rents. Best of luck!

What year port will you be drinking?

Carl is correct, 5 acres is nothing, not worth the farmers time or fuel to transport his equipment. I’m guessing whomever they’ve been leasing to has adjoining land? Honestly just be glad you don’t have to mow it at this point.

  1. I’d just renew with the prior lessor
  2. Contact farmers that own adjoining land, that’s your best option.

Keep in mind, most farmers will rotate crops so don’t get stuck on soybeans. I.e. Beans put nitrogen into the soil, corn pulls it out.

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Other options:

Small prairie for birds and other wildlife.
Community garden for the residents.

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Spend 5 years convincing the City Council to approve an expansion and sell the park with zoning for expansion.

@Jefferson congratulation!

Both require maintenance. Leasing to a farmer does not, and provides a small income.

True, but perhaps the value comes back with tenant satisfaction.

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