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  • From: Sundari Elizabeth Kraft <sundari93 AT yahoo.com>
  • To: Market Farming <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] Cost of land as % of gross sales?
  • Date: Wed, 22 Dec 2010 14:03:00 -0800 (PST)

Thanks so much to everyone for your feedback -- that's very helpful! I also like Willie's note about the landlord getting tax relief for having the land in ag production -- I had forgotten about that potential factor.

Thanks again,
Sundari



From: Willie McKemie <mf AT austinfarm.org>
To: Market Farming <market-farming AT lists.ibiblio.org>
Sent: Wed, December 22, 2010 2:55:25 AM
Subject: Re: [Market-farming] Cost of land as % of gross sales?

On Tue, Dec 21, 2010 at 07:01:29PM -0800, Sundari Elizabeth Kraft wrote:
> 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.)

Here in Texas, land in commercial production is taxed on it's "ag
value", which is typically FAR below it's market value.  Perhaps that
is the case in your area also?  If so, you can check with your local
taxing authorities on valuations.  I would guess that annual rents
should be 1/10-1/20 of ag value.  You should be looking at ag values
for row crop commodities that are grown in your area for which
valuations are likely well established.  Then, you can make a premium
offer for growing vegetables.  If you're in an urban area, you might
have to go one or two counties out to get your values.

Your potential landlord might look into getting some tax relief from
having his land in ag production.

--
Willie, ONWARD!  Through the fog!
http://counter.li.org Linux registered user #228836 since 1995
Debian3.1/GNU/Linux system uptime  101 days 49 min minutes
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