Dear Sir: I currently live in Colorado but own a farm in Garrett County that...
Dear Sir: I currently live in Colorado but own a farm in Garrett County that I lease to a farmer. I purchased the farm in 1995 and have been leasing 70 acres of crop land for $20/acre per year for a net income of $1260. I use a property manager and his fee is 10%/year. There has been no increase in the lease rate now for almost 20 years. It would seem that an increase might be fair at this point and more in line with current land lease rates. My accountant has concerns about the income to expense ration. The expenses are primarily related to insurance and property taxes and is almost double the income of the farm. I would most appreciate knowing what fair farm crop land lease rates are for 2014 in Garrett County. Please feel free to call me at (970) 416-8415 if you need additional information.
Garrett County Maryland
Hi, You are correct that land rents have been increasing in Garrett County and across the country. We do not have stats on what the average rates are but is seems like crop land is renting from $20 to $75 per acre. A lot of the rate depends on the demand which is mostly related to the location in the county. In areas such as Pleasant Valley south of Oakland there has been good demand so rental rates are higher than they are say in the central part of the county. We may see rate get a little softer in the near future as corn prices are greatly lower than two years ago. I would say that you could justify increasing your rate. If you need additional information call our office at 301-334-6960. It sounds like you have the leasing information you need but if you would like more information on leases we have that information as well. Thank Willie Lantz