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Tractor Talk Discussion Forum

Re: We tried to protect ourselves from poaching BTOs.

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Traditional Farmer

02-16-2013 17:24:00

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What happens if the bottom drops out of the market next year? High rents and low prices won't work too well.

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JD Seller

02-16-2013 17:37:42

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 Re: We tried to protect ourselves from poaching BTOs. in reply to Traditional Farmer, 02-16-2013 17:24:00  
We are not paying the sky high rents that many are. The average rent we pay is only about 15% higher than our 10 year average. We have not had to get into bidding wars. I will not do that. If they want sky high rents then they can go somewhere else.

Most of our rental agreements have a bonus plan that kicks in if the prices or yields go over a certain amount. The last several years the landlords have gotten a bonus based on this formula.

They may still get a bonus this year but that will not be until Dec. we just paid the base rate all in the spring rather than the half spring and half fall.

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Dr. Walt

02-17-2013 00:49:32

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 Re: We tried to protect ourselves from poaching BTOs. in reply to JD Seller, 02-16-2013 17:37:42  

I'm NOT a farmer so I have no idea how any of that works. Do you run the same crop on all of your lands or do you run Corn on one, Wheat on another, etc., etc. .

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JD Seller

02-17-2013 01:07:18

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 Re: We tried to protect ourselves from poaching BTOs. in reply to Dr. Walt, 02-17-2013 00:49:32  
On my farm I usually rotate the ground year to year. I have hay, oats, soybeans and corn. The corn is usually planted into the soybean ground. The soybeans go into the corn ground. When we need to rotate the hay. We spray and kill the hay in the fall and then plant corn in the spring in that ground. When we start a new hay seeding we plant oats as a nurse crop with alfalfa and brome grass into last year's corn ground.

The difficult part is that some of my ground is steep enough that you can not raise soybeans on it so you have to have it in hay or corn. I have about 100 acres of hay. So I try to seed down 20-25 acres each year. So the steepest ground is usually in hay. It makes planning the crops a brain bender at times.

My sons raise most of the crops on the rented ground. Usually we are just in a corn soybean rotation there. Until just the last 4-5 years we would have been in a 50/50 rotation. Now it is about 2/3 corn with a 1/3 soybeans. So it is two years corn with one soybeans now.

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