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Re: Complicated land rent question


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Posted by JD Seller on March 13, 2016 at 09:20:15 from (208.126.198.123):

In Reply to: Complicated land rent question posted by Nick m on March 13, 2016 at 08:00:16:

Just go and see the daughter ASAP. Waiting just makes it worse. IF she is scheduling a sale already then it would appear that they would not have the equipment to finish the harvest BUTTTTTT you do not know anything other than the rumor mill stuff. GO AND talk to her IN person!! You can gauge people's reactions in person much better than over the phone. She maybe upset or not you can tell much better in person.

Here is my personal experience with family dying. When my Grand Father died we had a clear plan for succession in place. Basically me taking over and paying my Grand Mother. Within DAYS the buzzards/friends??/local farmers had contacted ALL of the landlords we rented ground from. NOT ONE single one had the balls to contact us, the family, directly. They had fifty different stories told to the landlords. Every single one of them trying to get the land to rent. So before my Grand Father was COLD in the ground I had to go to EVERY single landlord and talk to them about what was going on. What made me mad then and I am still hot about, this was 5 days after he died, Two days after the funeral. He died on Dec, 19 and was buried on the 22nd. So I had to spend Christmas Eve placating landlords stirred up by RUMOR and gossip!!!!!! Thank GOD we live in Iowa with clear land rental laws and we had written contracts with every single landlord. The real funny part was these contracts clearly spelled out the transition if either of us died. Only one of 13 landlords even thought to look at the contract they had in hand.


Now for the value of the wheat crop. That is hard to put a value on. You need to know what the farmer has already done. If he fertilized it when he planted then the estate has the cost of the working the ground, seed, and fertilizer already invested in the crop. In most states the estate, at the minimum, is entitled to the value of that at the very least. In Iowa the crop is planted and is the estate's until the next Sept. 1st unless the ground is released in writing from the estate.

Here is how I would handle it. IF the crop was fertilized when planted then all that is needed to finish the crop is some spring nitrogen, maybe herbicide application ( depending on the location) and harvest). I would apply the spring nitrogen and herbicide. Then harvest the crop. Take the cost of the spring fertilize and herbicide, plus the seed and fall fertilizer, right off the gross grain sales price. Then pay the 2016 rent. Then split the remaining amount 50/50 between you and the dead farmer's estate. His planting the crop and your harvesting it are equal to me as far as work. So just reimburse each other for out of pocket expenses and split what is left.

I could look anyone in the face after doing it this way. Just taking the crop over without giving the dead farmer's family some thing is the same as stealing to me. I know many landlords and farmers that would think nothing of just walking in and taking over but I DO NOT feel that way.


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