Ruminations 24-06: The Lease is Dead. Long Live the Lease!
I lease land, like about 40% of all farmers. Pasture in eastern SD is usually at a premium since crop insurance keeps corn king, making it necessary to lock up leases for a longer term in order to 1) see the changes in productivity from management and 2) recoup investments in infrastructure (and/or get cost share for projects). Most landowners would scoff at the idea of the validity of investing $25k in pasture improvements let alone hogs on pasture.
Finding a landowner that shares your vision for the land is vital to success. This is what made my lease special. My landowner believed in the process I started 3 years ago, and more importantly, in me. He believed in me enough to return a pasture lease check to give me run of the place. I even signed up for cost share from the NRCS EQIP for fencing, water, prescribed burning and grazing, and to help with clearing cedars.
I was close to getting cost share, had half my hogs claimed, a steer claimed, and 15 chickens. I had momentum. I had plans. What I was doing was working. So when I got a text from my landowner saying he was having health troubles in January my heart sunk.
Sure enough my landowners told me they wanted to sell. I spent 3 weeks crunching numbers and turning grey. I found out an easement I was hoping for to help facilitate sale price was not going to work. Then when the property was officially up for sale it was exactly what I feared being doctor distance to Sioux Falls and in Minnehaha County. $1.2M.
Before we go on, let me be very clear. This is a fair price given real estate prices and the market for HOMES. As a farm sale this is not only out of anyone's price range but is actively looking for subdivision. It's a price I just can't make work business wise.
I was offered to lease the land at a discounted rate, but to facilitate the sale and prevent any issues with the next owner, I decided to terminate the lease.
All is not lost, though. Using my network of friends and colleagues I have found a small, 6 ac homestead with some infrastructure I can build around to raise my hogs and eventually chickens. It is starting over, but it's starting over with the wisdom of the last few years. I'm looking forward to this next challenge while still providing the best food possible to my family and yours!
