Re: What to pay for yard rent?
I am looking at possibly placing hives on other peoples land in the future. So I have thought this issue over a fair bit. I am also pretty hard nosed when it comes to business so this does not apply if I have a friend that wanted a hive or anything like that. this is simply looking at the numbers and my business experience and saying what is what for me.
I can purchase a hive fro roughly $300. I can build one btu I consider it the same cost. I just paid that cost in a different way. I then add $125 worth of bees and an estimated $50 a year in care. This does not even include my time. At the end of one year I have what will amount to a hive that might survive winter. has a bunch of drawn frames in it. propolis bees that are full of venom, wax, and maybe enough honey for only the bees. I have seen figures as high as $1500 on the value of this object. So in short I have started with nothing and covered the entire expense in every way of producing a $1500 item. An item that may very well produce some of that value in the form of income in the following year. probably could result in some of that income even in the first year. Suppose I made a split and sold a nuc for example. Produced a few queens from the hive etc. All of these earning area a result of my knowledge work and investment. The land owner on the other hand has provided a spot of land. I will say for the purpose of this train of thought they allow me to fence in 1/8th of an acre. I provide the fence and the labor. again the full expense is on me. travel to manage the hives is also fully my expense.
So what is the value of the 1/8th acre. I know I can buy 5 aces of land and a home for less than $50,000 around here. Just land would be less than $25,000 right now. so lets say the land is worth $10,000 an acre just to be safe. So we have the land owners $1250 worth of land compared to my approx $1500 contribution. This does not include any travel. any time or any fence yet. But you can already see how in my mind it is ridiculous to think I am going to pay a land owner even more to keep hives on their property. Just how fast do I really want to be bankrupt. I have looked at this much further here at home than I will go into here on this thread. but in the end the very best share I see a land owner will end up with even when profits do come in is about 10%. this is factoring in all costs, labor, travel etc. They contribute at best 10% of the investment. Now if you place more than one hive on that 8th of an acre. the land owners contribution dwindles to almost nothing. 10 hives for example woudl cut there percent of the investment to 1%. 1% of ten hives profit that is. In the end I don't see the land owner being owed much of anything if the number of hives is realistic at all. I don't see anyone going to all the trouble for just one hive. In that case a hive produces 100 lbs of excess honey. the land owner has 1 lb coming to them. if bees are sold they should receive 1% of that money, etc. It is after all an investment and a risk. no investment has guarantee profits. it isn't for you and it should not be for the land owner. Land value will vary wildely from location to location. land is expensive here.
Everything gets darker, as it goes to where there is less light. Darrel Tank (5PM drawing instructor)