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<br />l' <br />C'? <br />C\l <br /> <br />Repayment Ability of P:'(Jject Lan~ <br /> <br />The relationship between land owner and renter in the leasing of <br /> <br />farm property for operation by renter is a convenient and practical <br /> <br />means of establishing net crop income. This eliminates an estimate <br /> <br />of the many items comprising the cost of production which are difficult <br /> <br />to accurately evaluate, and over a period of years has established <br /> <br />? <br /> <br />what is believed an equitable division of crop income between land <br /> <br />owner and renter. A common rental agreement which lends itself well to <br /> <br />a determination of repayment analysis is one in which the land owner <br /> <br />furnishes the land and improvements and pays the cost of insurance, <br /> <br />depreciation and maintenance of farm buildings, taxes and water ch~rges <br /> <br />and receives in return a stipulated portion of gross crop income. <br /> <br />Rental agreements of the area on the above basis provide for the <br /> <br /> <br />owner to receive 1/2 the hay, 1/3 the fruit, 1/3 the grain, 1/4 the <br /> <br /> <br />vegetables, 1/3 the ensilage, 1/4 the income from sugar beets, and <br /> <br />l/h the income from truck crops. The renter's share of crop income <br /> <br />covers other costs of production which includes such items as super- <br /> <br />rision, labor, farill equipment, seed, supplies, etc. utilizing the owner <br /> <br />renter relationship basis of determining net crop income as outlined <br /> <br />above, the owner's share of the increase in annual crop income per acre <br /> <br />- <br />cropped under present condition ahd with project water is shown by the <br /> <br />following table: <br />