Skip to Content.
Sympa Menu

market-farming - Re: [Market-farming] Cost of land as % of gross sales?

market-farming AT lists.ibiblio.org

Subject: Market Farming

List archive

Chronological Thread  
  • From: KAKerby AT aol.com
  • To: market-farming AT lists.ibiblio.org
  • Subject: Re: [Market-farming] Cost of land as % of gross sales?
  • Date: Tue, 21 Dec 2010 22:59:29 -0500 (EST)

We have roughly the same rates out here.  I'm currently in negotiations to rent a very fertile, flat 14ac parcel for $100/ac/year for 2011, going up to $150/ac/year in 2012, then a cap at $200/ac/year from that point forward once we've been there and gotten all our infrastructure set up and rotations going.  This is close in land (within 5min drive of city of 200K), easy access, no power to the property but irrigation water via irrigation ditches.  Probably a lot less $$$/yr than your property owner has in mind.   Additionally, my income per acre per year would be drastically different on that parcel, depending on what I grow there - small grains, grazing meat animals, grazing dairy animals, hay, farmers market vegetables, wholesale, or some combination.  So I'm not sure the % of gross sales would be a good yardstick. 
 
I'd be curious to know if that $150/ac/year rate is consistent in a lot of other areas, and whether it goes up for parcels actually within city limits.  The parcel I'm negotiating for is real darn close to city limits, so our rates probably aren't that different.  Only the permitted activities.  You might also look at what's permitted on an in-town parcel that's so much bigger than what you're used to.  Size can change what's permitted and what's not. 
 
Keep us posted - I'm not involved in urban ag per se but I've been watching it evolve over the last few years.  There's some pretty exciting stuff going on in some cities nationwide.  A big hearty round of encouragement for your efforts.
Kathryn Kerby
frogchorusfarm.com
Snohomish, WA
 
In a message dated 12/21/2010 7:24:00 P.M. Pacific Standard Time, elainegranata AT msn.com writes:
Sundari:  I tell such people that organic ag land goes for about $150.00 an acre per year  -- that usually slows them down. If you pro-rate whatever percent of an acre his yard is you could come up with a number based on the $150 which I suspect will be a lot lower than what he thinks it's worth.
 
What about offering him the amount that a share costs?
 
Elaine
Denver
 

Date: Tue, 21 Dec 2010 19:01:29 -0800
From: sundari93 AT yahoo.com
To: market-farming AT lists.ibiblio.org
Subject: [Market-farming] Cost of land as % of gross sales?

I currently run an urban farming project that operates using a model (Neighborhood Supported Agriculture) in which homeowners donate their yards. I don't pay for the land, but the homeowners receive a share of the produce.

I've been offered a somewhat larger piece of land (about 8x bigger than my average yard), but the homeowner wants to collect rent in exchange for use of the land. I'm willing to pay something, but I think that his perception of what the land is worth is a bit "off."

For those of you that pay for land, can you give me an estimation of what you pay compared to what you reap in gross sales off of that land? (I'm not counting what you pay for water, etc -- just for the land.)

Thank you so much for your help.

-Sundari Kraft
 
---
Heirloom Gardens, LLC.
http://www.eatwhereUlive.com
Brian Kraft Photography
http://www.BrianKraft.com
Sustainable Food Denver
http://www.sustainablefooddenver.org



_______________________________________________ Market-farming mailing list Market-farming AT lists.ibiblio.org http://lists.ibiblio.org/mailman/listinfo/market-farming Market Farming List Archives may be found here: https://lists.ibiblio.org/sympa/arc/market-farming/ Unsubscribe from the list here (you will need to login in with your email address and password): http://lists.ibiblio.org/mailman/options/market-farming =

_______________________________________________
Market-farming mailing list
Market-farming AT lists.ibiblio.org
http://lists.ibiblio.org/mailman/listinfo/market-farming

Market Farming List Archives may be found here:
https://lists.ibiblio.org/sympa/arc/market-farming/
Unsubscribe from the list here (you will need to login in with your email
address and password):
http://lists.ibiblio.org/mailman/options/market-farming



Archive powered by MHonArc 2.6.24.

Top of Page