Rent Equivalent.

[Stuart J]

I'm sure I learned all about it at some point, but..

Whats the point in it?
How is I calculated?
When do I use it?

 

[Al R]

As in what way? To determine cost of production etc?

my sheep are charged at a rate of 60p/week (£30/year) this is what it would cost to put them somewhere for 12 months.

With corn I used to do a rent of £50/t (4t crop = £200/acre rent equivalent)
With grass silage I used to do a rent of £50 per cut

 

[digger64]

I'm sure I learned all about it at some point, but..

Whats the point in it?
How is I calculated?
When do I use it?

Cost to service a mortgage per acre per year against the crop /stock enterprise to see if the enterprise or whole farm can service it without busting its self .
Not really relevent nowadays as land value has no relation to farming , I suppose a loan for a new shed or new enterprise etc might be looked at like that to decide how long to spread payments over .

 

[teslacoils]

What you could get letting it out instead.

 

[digger64]

What you could get letting it out instead.

thats opportunity cost