August 28, 2024
Answers are from the Profit Planners panel: David Erickson, farmer, Altona, Ill.; Mark Evans, Purdue Extension educator, Putnam County, Ind.; Jim Luzar, landowner and Purdue Extension educator, Clay and Owen counties, Ind.; and Steve Myers, farm manager with Busey Ag Resources, LeRoy, Ill.
We want to grow our farm to bring a daughter into the operation. She graduates college in the spring of ’25. I can tell a nearby landowner is unhappy with his tenant, but he has not openly said the farm is for rent. We aren’t the type to undercut people, but we don’t want to lose the opportunity. Should we approach him now? If so, how? Or do ethics say to wait?
Erickson: This situation needs to be handled carefully because the effects are likely to be long-lasting. Some believe it is acceptable to make the landowner aware that your daughter is graduating and considering coming back to your operation. Consider introducing the thought but not directly asking to rent his farmland. I think your daughter should prepare a resume with a cover letter outlining her goals and interests that she could send to landowners so they would know more about her. This approach would be like applying for other jobs and keeps you out of this endeavor.
Evans: There is a difference between hounding someone and providing information. It seems fair that you inform the nearby landowner that your daughter is joining your operation and that if there was ever a desire to switch tenants, you would be interested and appreciate having an opportunity to be considered. There is nothing wrong with a few key points of what you offer. Do not criticize the current tenant or make promises you cannot keep. If you are pleasant and seem easy to work with, you will likely be considered if there is truly a desire to switch tenants.
Luzar: I think your most effective and ethical approach is to communicate your intentions to expand your business as your daughter returns from college. This can be communicated to all landlords you wish to contact and inform of your business plans. If the landlord you mention is motivated to change tenants, this provides them with an opportunity to strike up a conversation. A resume with references would be a great way to communicate the coming expansion plan. Your daughter would enjoy the opportunity to help craft the farm’s resume, assuming you don’t already have one.
The problem I see with a direct conversation is that the landlord may not be comfortable talking about the shortcomings of their tenant/landlord relationship with you. You may be inferring that the landlord has issues with the tenant, and it could just be grumblings and musings that do not justify changing tenants. Switching costs can be relatively high in some cases with landlords; they may perceive it to be a big change to replace tenants. Keep the conversation professional and courteous. Your expansion plan with your daughter communicates changes in your operation that justify communicating to landlords.
Myers: This is a delicate question, and your ability to accurately read the situation is important to how you navigate the topic. One of the ways to handle this is to sit tight because if you “can tell” the landowner is currently unhappy, you must have a relationship where you know each other well, so it could be unsaid, correct? The second avenue is to talk to the landowner in person and openly say that you have interest should there be an opportunity. Being in person gives you the chance to elaborate on this difficult moral topic, considering both the Golden Rule and the professional business lesson you would be teaching your daughter.
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