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It sounds to me like you're making two points: 1. Tenant farmers often pay their landlord partially in kind, with things like driveway plowing. Outsider tenan
by jefftk 6y ago
It sounds to me like you're making two points:
1. Tenant farmers often pay their landlord partially in kind, with things like driveway plowing. Outsider tenants wouldn't do this.
2. The tenant farmer has a wide range of options for how well to take care of the land, which affects its long-term value. Outsider tenants would optimize to maximize production during their lease at minimum cost, hurting long-term value.
I don't think (1) is a major issue: landlords can consider the in-kind benefits they get just as well as cash compensation. But (2) seems very serious to me. Market rates for land are much lower than they would be without the issue that the landlord needs to trust the tenant to be a good long-term steward. Whether Tillable can succeed long-term depends on whether they can solve this.