How do you price a lease?

[wiam]

Depends on the neighbors plans for the trees. Tapping can significantly change the value of an individual tree. If the butt log is suitable for veneer, you could get $3-4K for a prime butt log. Once it's tapped, no veneer plant I know of will accept it. The veneer plants only want the butt logs.

I agree that veneer is worth way more, But there are very few trees in any woods that will go as veneer.

[Cabin]

Another thing I do for the lease, is that I help the landowner get an Ag Assessment, based on my farm income. Once in place the landowner gets far more reduction in taxes and what my lease payment is. On my larger bush, he told me his property taxes dropped to about 1/3 what they were without the Ag Assessment. This of course may only be true in NY, the land of high taxes, the spend and tax state.

In PA it is Act 319. We pay less on our 22 acres of farm land than we pay on a 3 acre home site. Not counting the houses on both.

[Scribner's Mountain Maple]

The price you pay per tap is pretty insignificant. So long as your not going above $2 per tap. I gladly pay $1 to lease land that is above my sugarhouse.

It is also relevant when considering price per tap to keep location and trucking in mind.
- If the sap runs into your sugarhouse without pumps. (i.e. the property your leasing is above your sugarhouse and is an adjoining propert) it is worth more
- If you have to truck the sap and set up remote pumping stations, that is a much bigger PITA.

I think I would pay up to $1.50 per tap if the sap ran into the sugarhouse. And on the flip side, I wouldn't pay more than .75 for anything I have to haul.

Once the lines are set up, vac is in place, the cost of the lease will be a pretty insignificant annual expense. (for 500 taps you can make 150 gal of syrup, at bulk price or $30 per gal, that's $4500. Pay the landowner $1 per tap, that still leaves you $4k profit annually once the equipment is paid off.

Get a long term lease. 5-7 yr min, 10 yr ideally. Record it with the town in case the land is sold.

The Proctor Research website has a sample contract that is a really good starting point to set up a lease.

Good luck,
Ben