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Computing a Livestock Building Cash Rental Rate

Summary

Livestock buildings represent a major investment on most farms. However, in some cases, buildings sit idle while owners continue to pay real estate taxes and insurance premiums on them. On the other hand, some livestock farmers wanting to expand production are hesitant to invest in more buildings or commit funds to modernize present facilities. Both parties may find that renting existing buildings is advantageous. But establishing a rental rate that is fair to both parties is not easy.

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Estimating a Rental Rate for Livestock Buildings