Custom Rates and Land Rents

  From the May 8, 2017 Issue of Agri-News
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 The Alberta Ag-Info Centre has been getting some different calls recently on customs rates and land rent due to unharvested crops.

“Last fall, we started to notice a real upswing in custom rate requests for grain drying,” says Ted Nibourg, business management specialist, Alberta Agriculture and Forestry. “As we got further into the winter, we saw unusual timing for custom rate requests – for example, combining in February, and baling in March. There were also requests for newer equipment, like vertical tillers, to handle field rutting.”

He says unharvested crops are also prompting land rent questions.

“Just like with custom rate calls, we started to see this last fall with some land owners calling with questions about tenants being unable to make their second payment. As well, there are situations where new tenants are faced with getting a crop off that was left behind by a previous tenant, and land owners and having to discount rents because of it.”

Nibourg says land owners also have to be aware of their own responsibilities when it comes to burning.

“Should those fires get out of hand, the ultimate responsibility rest with the landowner. They should stay in close contact with their tenant to understand what they’re doing. Landowner-tenant contracts will be more important than ever to ensure there is written approval from the landowner for things like dealing with straw.”

Bottom line, says Nibourg, is that there will be need to be a lot of give-and take this year between land owners and tenants. “Negotiations and discussion are really going to be important when it comes to avoiding potential problems.”

Alberta Ag-Info Centre
310-FARM (3276)

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For more information about the content of this document, contact Ted Nibourg.
This document is maintained by Ken Blackley.
This information published to the web on April 27, 2017.