Cost per acre to grow corn and beans

jacksonduper · Oct 5, 2013

Just kicking around an idea. Currently we have a 170 acre farm raising beef cattle. We rent out our 90 acres of Cropland and I make my own round bales of hay on some rented ground and some grassland I get for free. There is 40 acres for sale right next to our farm. My questions is what does it cost per acre to grow corn and beans approx. Could I buy the land hire a local farmer to,plant and harvest it. I have a really good relationship with my renter. I help him out when needed and we share some hay equipment. Could I Ipay the mortgage, taxes etc. and make a little profit.

newfarmer9 · Oct 5, 2013

I'm not sure what farm land is going for in your area, but in most areas at today's farm prices, you won't even come close to covering the mortgage with the farm profits, let alone leaving room for profit. Also, if you have to hire someone in to plant, spray, harvest, etc. on a small plot, your profits will be significantly reduced.

GordoSD · Oct 5, 2013

If there is 40 acres for sale adjoining your land buy it! In the future larger parcels will be worth much more than small patches.
After you own it you can figure out how to manage it.
Check current yields (bpa) in your area. Check input s to plant crops per acre. Check rental rates.
Where are you and what is the asking price?

FarmerZeb · Oct 5, 2013

it depends on how much you have for a down payment. If your mortgage is too high it will be real hard. I would want to get mortgage and taxes to be less than 170/acre for the yields in my county. It cost me around 200-250 for soybeans. I don't do corn but I do grow milo and that runs around 250...corn would be more. I do everything myself. I couldn't make it work hiring stuff out. But all of this is highly location specific.

-paul

donjr · Oct 5, 2013

I planted a few acres for a neighbor last spring into a triple stack. He provided a spun on fertilizer, I planted and sprayed the chemicals with 20 gal of N solution. I'm not sure of what he put on, but I figured a custom rate for my time, and the materials I used, which came to about $275 per acre. This also included a second trip after the corn was up with glyphosate. Looks to be at least 150 bu. in the field going past, but he still has to pick it. My corn with my fertilizer cost this past year was about $350 per acre.

JMS/.MN · Oct 6, 2013

Impossible to answer with all the unknowns. What is the price per acre of tillable land? Down payment? Mortgage balance and interest rate? Taxes per acre? Typical yield of corn/beans in your area? Chances of crop failure- how many years out of 10? Your local prices of seed, fertilizer, other crop inputs? Local input costs are easy to figure.....Easy to spend over $200 for beans, $400 for corn. I"ve always felt it difficult to pass up buying adjoining land, (often never again available in your lifetime, plus it can"t be closer to you) but you need to run the numbers, plus your options- like buy/farm, or buy/rent out.

Nebraska Cowman · Oct 6, 2013

If you can pay the mortgage out of your off-farm wages, I'd yes, you can make it work. There should be enough profit in $5 corn to pay the expenses. But don't expect the land to pay for itself.

DoubleR · Oct 6, 2013

If it adjoins your farm, buy it! You can figure the use of it later.
Don't make the mistake I made years ago. I had the same oportunity and passed it up. Been kicking myself ever since.

Icuby · Oct 6, 2013

My former renter farmed my farm for 21 years and he has land on both sides{320 acres with mine} but gave it up this year because he didnt want to pay going rent price. He is only 59 yrs old and lives with Mama,no wife,no kids,never married. He is now putting in fence. When he rented from my Father,he would always jew him down in cash rent price ,but found out that does not work with me.

David G · Oct 6, 2013

I would agree with Double, buy it if it adjoins your property.

Josh in Pa · Oct 6, 2013

You won"t even come close. Corn is expensive to grow, and we may be coming into some lean years. If you don"t have the equipment you are better off renting it out. Figure the payments, and the cash rent price. If you can find enough income somewhere else it may be worth it.
Josh

Cost per acre to grow corn and beans

jacksonduper

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newfarmer9

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GordoSD

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FarmerZeb

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donjr

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JMS/.MN

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Nebraska Cowman

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DoubleR

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Icuby

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David G

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Josh in Pa

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