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Tractor Talk Discussion Forum

Renting one acre, planting lavender, how much?

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BobReeves

04-04-2007 04:26:47




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Have an X-neighbor that wants to rent an acre of our property to plant lavender. He is offering to rent it but I have no idea what to charge and we haven't discussed finances yet. I know it won't be much but have no idea what would be reasonable for both of us.

Thinking it might be better just asking for a percentage of the profits from the crop, he does the work, I supply the land. This way he won't be out any money till he actually receives some income off his crop. Anyone have any idea what an acre of lavender will produce dollar wise? I know nothing about growing the stuff but he seems to think he can make a buck.

Any insight would be appreciated, thanks...

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Mattlt

04-04-2007 12:45:41




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 Re: Renting one acre, planting lavender, how much? in reply to BobReeves, 04-04-2007 04:26:47  
Are you sure he's not looking for a place to grow Pot?



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BobReeves

04-04-2007 14:21:30




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 Re: Renting one acre, planting lavender, how much? in reply to Mattlt, 04-04-2007 12:45:41  
Although I am 62 I am pretty broad minded.. If it was legal (IE: not risking going to jail) I would be growing it :)



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paul

04-04-2007 10:41:46




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 Re: Renting one acre, planting lavender, how much? in reply to BobReeves, 04-04-2007 04:26:47  
On a normal farm, such a deal is a real hassle. Fellow would want the acre cheap; lets the weeds grow up & contaminate the whole field; then have to spray around such a sensitive crop & require kid gloves working around it. Would never be worth it to the land owner, at 3x the regular rental.....

As well, it can mess up any govt programs - under the right conditions, someone in the program could end up having to repay $300 or more for that acre to the govt, as well as a stack of papers....

In your case,if it sounds like waste land anyhow, you aren't out much anyhow.

The shares deal would probably work out the best for all, if everyone is honest about it. Hand weeding/ harvest/ possible processing labor is going to be the big cost, so regular 40% (landowner) / 60% deals for grains doesn't work out well. Probably closer to the 25% someone else mentioned? Allow him to figure out his cost/income & counter offer, if he has a lot of other expense we are not aware of. If he's got a $4000 gross with a lot of fertilizer & extreme labor costs, maybe 4% to you ends up being fair. I'd think it over & work with him on that. If you supply any labor, up it. Many times fertilizer & seed costs are also split in a typical 40/60% land rent - he may counter with such a plan.

Sounds like the equipment use might be an on-going 'issue' from a barrower-be. Might want to look up state average rental costs on that (a search on-line or at your extension office) and charge those per-hour or per-acre costs. Keeps the tractor use fair. Sometimes those costs look high, but maintaining a machine takes $$$$, and renters tend to let things go, so I'd not back down on these costs at all. Sooner let him use the acre for free - you aren't out anything it sounds like - and make sure your equipment isn't abused by charging enough for their use.

Yea, I'm way too detailed for one friend/neighbor borrowing one unused acre. :) Typically let the fellow have it for a case of beer & everyone is happy, no worries. :) Just tossing out some ways bigger operations do it, in case this grows into something. :)

--->Paul

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TomTX

04-04-2007 10:21:33




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 Re: Renting one acre, planting lavender, how much? in reply to BobReeves, 04-04-2007 04:26:47  
I would not get into this deal with a guy who doesn't even own a tractor. What kind of a guy wants to farm your land with your tractor? Sounds like a dreamer/wantabe farmer. He may tear your tractor up and not fix it. He may know nothing about working the land, and leave you with nothing buy a rough weed patch. I would say RUN. Tom



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Rich Va

04-04-2007 09:15:04




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 Re: Renting one acre, planting lavender, how much? in reply to BobReeves, 04-04-2007 04:26:47  
You might want to get something writing in case he wants to junk it up.



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Walt Davies

04-04-2007 08:51:06




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 Re: Renting one acre, planting lavender, how much? in reply to BobReeves, 04-04-2007 04:26:47  
There is small farm north of me that raises Lavender I always wonder about it when i pass the farm. Doesn't seem to be a lot of activity there but then I'm only going past at 55 MPH so I'm not one to say if its a good or bad business. By the way what does one do with Lavender.
Walt



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BobReeves

04-04-2007 09:42:43




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 Re: Renting one acre, planting lavender, how much? in reply to Walt Davies, 04-04-2007 08:51:06  
The link that "reply" posted below gives a pretty good outline on it's uses and how much one can expect to make per acre.. I agree though it will take allot more than an acre to make it profitable.



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Dandy Don

04-04-2007 09:42:25




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 Re: Renting one acre, planting lavender, how much? in reply to Walt Davies, 04-04-2007 08:51:06  
Looks to me like all he would be doing is plowing, discing and riding his tractor along with getting a lot of fresh air. From the thread on Lavender; "More than three quarters of Sequim’s lavender production is distilled into oils and sold on the international market; prices vary from about $30.00 to $49.50 per liter (1.1 quarts) depending on the type and quality of the oil. Oil production per acre varies greatly with the genus of lavender being grown. For example, Lavandula x. intermedia ‘Grosso’, produces 76 liters per acre in Sequim while L. angustifolia ‘Maillette’ produces only 16 liters per acre. Although the angustifolia oil harvest is much lower that that of the intermedia, the angustifolia oil, used in fine perfumes, commands a premium on the world market." Huh! If my math is right $480.00 to $3762.00.
Dunno about this stuff. Don

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esd103

04-04-2007 06:09:55




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 Re: Renting one acre, planting lavender, how much? in reply to BobReeves, 04-04-2007 04:26:47  
Talk to your county extension agent. They should be up on common practices for your area.



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Bill in NorthCentral PA

04-04-2007 05:27:35




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 Re: Renting one acre, planting lavender, how much? in reply to BobReeves, 04-04-2007 04:26:47  
I think you're idea of profit sharing would work well. I let a "retired" farmer use 10 acres for the last six years (means I don't have to brushhog this piece) and we never talked rent. I'll be the first to admit, he never pays, and I still got the better end of the deal in help, advice, equipment borrowing, etc. I'd do'er that way again in a heartbeat.

Good luck - Lavender huh?!

Bill



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TomTX

04-04-2007 04:44:50




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 Re: Renting one acre, planting lavender, how much? in reply to BobReeves, 04-04-2007 04:26:47  
Around here, landowner gets 25 percent of crop, and does not participate in the expenses or labor. Tom



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reply

04-04-2007 04:42:29




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 Re: Renting one acre, planting lavender, how much? in reply to BobReeves, 04-04-2007 04:26:47  
Here's some info. Doesn't look like a person would get rich on one acre.
http://www.emmitsburg.net/gardens/articles/adams/2006/growing_lavender.htm



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BobReeves

04-04-2007 09:38:47




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 Re: Renting one acre, planting lavender, how much? in reply to reply, 04-04-2007 04:42:29  
Thanks for the tips gang...

I was out of town when he stopped by and talked to my wife about the deal so haven't really talked to him yet. Not sure if he would want the extra work but I have about 4 acres that could be used without interfering with anything except me having to mow it. Thinking he just wants to do an acre to start and see how it works out. He took a soil sample from the area we are thinking about and the results of that will probably determine if he actually does anything..

Probably the other issue that will come up is I have the tractor but no farming implements, plow, disk fertilizer spreader etc, don't think one can farm with a box blade, landscape rake and various mowers :) He doesn't own a tractor so am guessing he will want to use mine. This may open up a whole new can of worms....

Said he would stop back by after he gets the results back from the soil sample, just wanted some input from those that know before I actually talked to him...

Thanks
Bob

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Dandy Don

04-04-2007 09:48:27




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 Re: Renting one acre, planting lavender, how much? in reply to BobReeves, 04-04-2007 09:38:47  
Bob, since you'll be furnishing the equipment and land which you'll have to pay taxes on....I guess the best I could offer the fellow is minium wage and no vacation. Also NO retirement.He,he. Don



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