The Rural Voice, 1986-04, Page 44We're in
BUSINESS
to keep you
WORKING
• Chisel Plow Points
• Mould Board
• Concaves
• Shins
• Landsides
• Feeder Chain
• Coulter Blades
• Raddle Chain
• Grill Guards
• Roller Chain
• Gathering Chain
• Cylinder Bars
• Plow Points
• Grade 8
Fine Thread Bolts
• Grade 5
Coarse Thread Bolts
• Cultivator Points
• Disc Blades
• Hand Tools
• Shop Tools
Hugh Parsons
BOLTS & TOOLS LTD
1 miles east of Hensau
519-262-5681
WOOD
• 8" Heavy
I -Beam
• Hardened
Cutting
Edge
• 3 Point
Hitch
• 2 Way
Valve
• 4" x 16'
Cylinder
SPLITTER
George Smyth Welding
And Machine Shop Ltd.
R R. #2. AUBURN. ONTARIO NOM 1 EO
519-529-7212
PG. 2
SPECIAL EQUIPMENT SPECIAL,
o(f"
What to pay for renting land
This seems to be a question that
a lot of people are rolling around
in their minds lately. With low
commodity prices and the prospect
of this next fall, there is a lot of
negative pressure being exerted on
land rents. Many farmers are giv-
ing up some of their more marginal
parcels or those furthest away and
concentrating on doing a better job
on a smaller land base. This can be
accomplished by being more time-
ly, increasing the management
level on the smaller base, or cutting
back on machinery expenditures.
To me this process of falling
land rents and cutting back on
marginal land makes good sense
and is normal. For it was the high
price of commodities that drove
land rents up and brought
marginal land into production.
Thus, now that prices have declin-
ed, so should land rents as well fall
in line along with those not so at-
tractive extra land parcels.
But what to pay for land rent?
It's always interesting to hear the
numbers floating around. 1 believe
the answer to this question is as in-
dividual as each farmer's finger-
print. It all depends on the in-
dividual farmer's cost of produc-
tion and the parcel of land being
considered. There is no magic
number that will work for all
farmers. Estimating yield is crucial
in performing break-even analysis
on a parcel of land. Use as ac-
curate as possible input costs. Here
are some key points to consider
when renting ground.
• Agreement Type — There are
four main types:
a) Variable Share — landlord gets
a proportion of the crop
b) 50:50 Split — landlord supplies
50% of inputs plus land and gets
50% of the crop grown
c) Straight cash rent
d) Flexible cash rent — here rental
rate is adjusted for commodity
price and field yield
Each agreement type has its ad-
vantages and disadvantages in
terms of risk for both landlord and
tenant. Many times landlords want
to participate in the cropping ven-
ture and thus a 50:50 split is a
tangible method. But no matter
which agreement type is used,
"trust" is a key input between
landlord and tenant.
• \\ eed Pressure — If the field is
infested with quackgrass, this pro -
APRIL, 1986
bably means the field has to be
planted to corn. Which means split
applications of atrazine to control
the quackgrass and perhaps even a
third pass with the sprayer to kill
the triazine resistant weeds. This
process can be quite costly and
thus these extra costs should be
deducted from the land rent.
• Time of Payment — Some
landlords want the money in the
spring. Thus, if one has to borrow
the money, then this extra expense
should be deducted from the rental
price.
The following are thumb rules in
estimating potential yield:
• Topography — If the land is hil-
ly, deduct 20-40% off potential
yield.
• Soil Type — Heavy clay —
deduct 10-15%.
• Drainage — Poorly tiled —
deduct 20-40% of yield estimate.
• Production History — If in
alfalfa — add 20% to yield
If in Red Clover — add 10% to
yield
• Tillage Practices — If the soil is
badly compacted and rutted —
deduct 15-20% off yield.
Ken McEwan,
Farm Management Specialist
Power Take Off Clinic
At a recent meeting of the
Huron County Farm & Home
Safety Association the directors
decided to sponsor a Power Take
Off Clinic. This clinic will be held
in conjunction with the farm
machinery dealers in Huron Coun-
ty and will be held on one day —
April 1 only. On this day farmers
may take their power take off
shafts to their dealer to have them
inspected and repaired. The
dealers are waivering the cost of
labour to replace broken or worn
parts on that day. The farmer will
be charged for replacement parts
only. The safety-related com-
ponents for power take off shafts
pertain to such items as nylon
bearings, tumbling shields, guards
and other items which might save a
limb, arm or life. This should pro-
ve to be one of the most worth-
while projects ever launched by the
Huron County Farm & Home
Safety Association. Further details
about this clinic are available by
contacting John Underwood,
President, at 335-6277.1=