NY 986: There is competition here too. We just are not going to get into the bidding wars some of these BTOs want to do. Most of the ground we have we have had for many years. My middle son is renting ground My Grand father rented in 1940. We have farmed that ground now for over seventy years. We must be doing something correctly.
Most of our contracts are for five-ten years. The extra three was what we asked for and we got longer on more than half of the farms.
We have all the ground we want at this time. My sons all have off farm jobs. The older two have very good off farm jobs. We have talked about them going to farming full time. We just do not think that is good risk management at this time. Farm income has been sky high the last few years. That will change. When it does exactly is anyone guess but it will happen.
The BTOs that are throwing their weight around right now will be in sorry shape when that happens. Also when farm ground price goes back down and the rents follow, the outside investors will not make the returns they are seeing now. So they will suffer for their mistakes.
Also we turned down more ground than we currently farm this year. Most of them would have been getting less rent but they did not like how their land was being handled now. Also we have a reputation of always meeting our obligations. How many of the BTOs will be able to do that when things crash???
Their are a few paying $535 an acre cash rents just to the north of us here. Even if the landlords have a contract how are they going to get blood from a turnip???
People see what goes on and they talk about what and how they are treated. Also many do not want to deal with a miserable person. It kind of reflects back on you.