Cost of planting

8N Tim

Member
Hi everybody. I am looking at taking over the family farm from our rent a farmer this coming year. There is about 140+/- acres near Berthoud Colorado. He is
currently alternating wheat and corn each year. The family was growing corn and alfalfa before that so we have the equipment in good working order to grow hay,
alfalfa, corn, and wheat that much I know for sure. I don't have much money to start out for seed so I was wanting some ideas on what would be the most cost
effective options? Also is there some type of seed money co op or loan program that you know of? Any guesses on profit and yield out of that size property? Any
info would help!
 
I don't want to be negative,just realistic. You'll need a real good line of credit. With 140 acres,we're not talking hundreds of dollars in inputs,or even thousands. Tens of thousands at the very least depending on the crop.
Are you thinking about Roundup Ready corn? If not,you'll need to be a Certified Applicator to buy the herbicides that you'll need. There are a whole bunch of things like that that you'll need to consider. I guess the rest of us have just gone along and adapted to changing times,but if you want to start out on that scale,you'll have a long learning curve. Not saying you can't do it,but it won't be easy,and certainly not cheap.
 
I already have a license. I've been looking at Roundup Ready, standard, and non-GMO seed I am considering all of them. I've been cutting hay for the Last 5 Years so I am comfortable doing that but I don't have as much experience with grain. There is a good chance we would hire out the spraying because I know a couple people in that line of work. I'm mainly concerned about the initial planting cost of the different types. I also know some private investors if I need. I am just trying to figure out some rough numbers of startup
 
Your best bet,if you want actual numbers to take to a lender,is go to where you'll be buying your inputs and get some real numbers from them. All anybody can do on here is give you a rough idea what it costs in our neck of the woods.
 
Like RRLund said, you really need to talk to people locally. What we pay for seed (if corn at least) will be different for those of us in the Midwest than you in CO. Seed companies vary prices by region. The traits you may or may not need are different by region, too. What crop are you looking to grow next year?

I would talk to someone at a local coop or something, but I would also talk to someone in extension or other independent resource. Remember the Coop guy is making his living selling you stuff. And if you need less stuff, he makes less.

So that will get you some cost data. You will also need income data- price and yield. What is local basis like? How many markets do you have to choose from? And what kind of yields can you get? Neither corn nor wheat have been hugely profitable as whole in the past few years, so don't look to get rich the first season :).
 
Your local farm service agency USDA loan officer can get you on the right track and let you know whether or not you qualify for any type of farm assistance there are some beginning and young farmer programs that help you get started and they will make sure that you have a proper business plan and financial records
 
If you want a number thrown out there,I've got about $10,500 in seed,fertilizer and spray for 80 acres of corn. That's with a 24,000 plant population and a lot of manure from my 200 or so,head of cattle,saving me quite a chunk on fertilizer.
 
You are in a very different climate than me. I expect you are dry, and would plant a lower corn population? This affects seed and fertilizer costs a lot, so as others say it is difficult to say.

I'm sure your state would have a similar chart to this one for my area.

https://www.extension.umn.edu/agriculture/business/crop-budgets/corn-soybean-budgets2017/index.html

They say here in my area about $740 an acre in direct costs to raise corn. $135 for seed, $162 for fertilizer if you want those 2 only.

Good luck, it is an adventure. If farming were easy everyone would do it. ;)

Paul
Mn crop costs
 
My local co op won't loan you money. They will let you run a charge account and bill you at the end of month. They expect you to pay at that time, or they will charge you finance charges. Alot of guys around my area will get operation loans at the bank to carry them for the crop season. Not sure how the banks handle collateral, but I am pretty sure they will make you be insured on your crops and anything being used for collateral.
 
Any farm Coop in your area will give you pretty exact figures for this year. Next year could be more or less.
 
When I started farming on my own in the 70's, I was small and hoped to grow with my local bank, but that dream only lasted a couple of years. They just were not set up for ag lending. After being refused a loan for a haybine, I turned to Farm Credit, and have never looked back. I bought my farm through them, and most of the machinery to do the job. At least, they will work with you and want to see you grow and expand. Their primary business is ag lending, and they want to see you succeed. Talk to them now, though. The original loan can be a drawn out affair.....
 

We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today.

Back
Top