$ per acre

Whiskey Bent · Feb 24, 2014

How much can a guy expect to net per acre? I know there are a lot of varables. I don't farm now but grew up on a farm and would like to farm 200-300 acres someday. Lets just pretend I have 200 acres paid and clear and do a corn and soybean rotation and yield 175 on corn and 45 with beans using paid for smaller older equipment. Could I make a reasonable living doing this as I move closer to retirement?

Wheat Farmer · Feb 24, 2014

When Dad died in 2001, I farmed the 320 acres of dry land wheat. 160 acres in wheat each year. 160 acres time 45 bpa time $4.50 = 32400. less repair, fuel etc. You could hire out when not farming. I COULD BE DONE.

old · Feb 24, 2014

Land in one state can be higher or lower in another state. Here in Missouri depending on where you are it can go for $1000 in this area per acre. But if your up north Missouri in true farming country it can be $3000 plus per

the flying belgian · Feb 24, 2014

Yes. In your pretend example with all land and
equip paid for you could make it if your standard of
living is not to high. But you better not have any
high priced break downs. With only 200 acres and no
livestock you should have time for at least a part
time day job as you can buy large older equip for
the same price as smaller older equip.--BIL says you
only need three things to farm now days. You need a
tractor, you need a cell phone and you need a wife
with a damn good job to pay the bills---

John_PA · Feb 24, 2014

Land is anywhere from $8500-35,000 per acre in this area, and none of it is good farm ground! haha

It's hard to find any larger acreage parcels around here to actually farm.

Have you considered renting some ground? That will at least give you an idea of what it is like to manage acreage before you spend big money. Auctions used to be a good place to pick up used equipment for a reasonable price, but lately, I have seen retail prices on auction equipment around here. At that point, you are better off to check the CL or other classifieds for someone who will let something go and be honest about it, whether it is god or bad.

I am not afraid of buying anything from anyone, as long as they are honest about it's true condition. I guess that goes for everything in life.

dmiller · Feb 24, 2014

One thing I'm learning.
Whatever it looks like on paper the real net return will be between 1/3 and 2/3 of what the pencil comes up with. There are always more breakdowns, forgotten/overlooked expenses, higher risks than the pencil thinks of.

Eldon (WA) · Feb 24, 2014

(quoted from post at 20:17:25 02/24/14) Yes. In your pretend example with all land and
equip paid for you could make it if your standard of
living is not to high. But you better not have any
high priced break downs. With only 200 acres and no
livestock you should have time for at least a part
time day job as you can buy large older equip for
the same price as smaller older equip.--BIL says you
only need three things to farm now days. You need a
tractor, you need a cell phone and you need a wife
with a damn good job to pay the bills---

....and a pen!

Eldon (WA) · Feb 24, 2014

(quoted from post at 19:41:33 02/24/14) How much can a guy expect to net per acre? I know there are a lot of varables. I don't farm now but grew up on a farm and would like to farm 200-300 acres someday. Lets just pretend I have 200 acres paid and clear and do a corn and soybean rotation and yield 175 on corn and 45 with beans using paid for smaller older equipment. Could I make a reasonable living doing this as I move closer to retirement?

I just read that almond farmers in California net around $5000 per acre. I grew 1/2 acre of onions last year that yielded around 15,000 lbs. I normally sell them for $1 a lb, but had to discount them towards the end of the season....still did better than almonds!

fixerupper · Feb 24, 2014

(quoted from post at 19:41:33 02/24/14) How much can a guy expect to net per acre? I know there are a lot of varables. I don't farm now but grew up on a farm and would like to farm 200-300 acres someday. Lets just pretend I have 200 acres paid and clear and do a corn and soybean rotation and yield 175 on corn and 45 with beans using paid for smaller older equipment. Could I make a reasonable living doing this as I move closer to retirement?

bout $200 profit per acre with 170 bu [email protected] per bushel. Beans $400 profit per acre with 45 bu @$13.00 per bushel. This is in northwest Iowa, going by my spreadsheets on the land I do own showing every expense including drying, trucking, marketing, etc. but not including my cost of living. My machinery is older and paid for. Jim

JerryS · Feb 24, 2014

Every time I see this subject discussed on this forum I'm reminded of the midwesterner who won $200 million in the lottery. When asked what he intended to do with the money, he said he planned to buy some land and equipment and be a farmer until the money ran out. Just shows you gotta love it. Thank God there are people who do.

paul in mo · Feb 25, 2014

Land prices in Lafayette county in Mo I"ve seen
prices go from 5,000 to 10,000 a arce we are 1
hour east of Kansas city. Good luck on your
adventure.

Dan T in MO · Feb 25, 2014

Try 12,000 per acre in Saline County, Rich. Well, that's what it was selling for in 2011. Now that corn is back down from the stratosphere, who knows.

MarkB_MI · Feb 25, 2014

You use the expression "paid and clear" as if the cost of land is free if you didn't borrow money to buy it. NOT TRUE! If you're paying cash, your cost is what that money could earn in a different investment. Interest rates are low right now, but they could go up in the near future. And high interest rates can hurt property values while increasing the cost of a farm operation. If you already own the land, your cost is what you could get renting it to someone else. Or you could sell that property (farmland prices are a historical high) and invest the cash elsewhere.

Same thing with farm equipment. Just because it's paid for doesn't make it free.

It's very optimistic to think you can make much money raising grain in a small operation. Better to look at specialty crops like vegetables. Of course vegetables are a LOT of work, which is why folks don't like to raise them.

Traditional Farmer · Feb 25, 2014

Holding your own land is just as much of an investment as any other and better than most because you can use your land to make money and to live on unlike a piece of paper saying you own such and such as stock.

Traditional Farmer · Feb 25, 2014

You're leaving out some other advantages of owning the land 1)He can plant a garden and grow most of his vegetables and fruits 2)get a wood stove to heat with and cut firewood off his property 3)Hunt deer and replace most of his meat he eats with deer,turkey etc.4)If he ejoys being on his farm and doing things there is no need for expensive vacations many folks take.A farm can be a big money saver or it can be a money pit depends on how its handled and used.

David G · Feb 25, 2014

I think you are doing pretty good to clear $200 per acre, but have to mind your costs.

MarkB_MI · Feb 25, 2014

TF, I never said that land isn't an investment. In fact I said much the opposite, that you need to compare its investment value against alternative investments. Penny stocks and Beanie Babies are also "investments", but I wouldn't recommend anyone to put their retirement savings in them. You have some work to do to convince me that it's a good time to buy farmland right now, when land prices are at an all-time high and the prospect of falling grain prices is very real.

Another problem with land is its notorious illiquidity. Most investments are fairly easy to sell if you're willing to take a loss (Beanie Babies being a notable exception). But if no one is buying land, you're stuck with it. Think real estate prices can't fall? A lot of folks in California, Nevada and here in Michigan were of that opinion. They were quite mistaken.

David G · Feb 25, 2014

Land prices here in Eastern Iowa are $8000-$12000, but I think it is sliding a little now that corn is down.

Geo-TH,In · Feb 25, 2014

Recently on the local news they said there are 2300 fewer farmers in Indiana and 1700 fewer farmers in Ill. They interviewed a mega farmer. His reply was it takes fewer farmers to do the same job. You have to be big to make it.

If I had just 200 acres, I would contract it out.

Ask yourself, why did 4000 farmers give it up in 2 states? That will the answer your question.

fixerupper · Feb 25, 2014

David the only figures that are questionable on my spreadsheet are the machinery costs. I use Iowa state custom rates for that. My spread doesn't show property taxes either. Jim

old · Feb 25, 2014

Yep the price varies A whole lot. Like down here at the lake f you buy lake front it can be as high as $1000 per foot of lake front

formenwhogrow · Feb 25, 2014

I'm gonna keep it simple, NO. Some years it will seem like it, but when you factor in depreciation, repairs, your headaches, weather, prices you don't control, and rising inputs, most years you'll just trade dollars and spin your wheels. Sorry to be a Debbie Downer, but that's the way it is.

Cas · Feb 25, 2014

Commodity markets have been hot the last few years. I would go over to Agtalk and start reading the marketing forum for 2 to 4 years. By then I think you would have a fair knowledge about what is going on. I have been involved in production agriculture for almost 50 years and have seen the highs and lows come and go.
Land has been a good place to gain and store wealth for these years. But, I still hear my father saying(in my head) in the 1930s he could not make the morage payments or even interest. The man at the bank told him to just pay the taxes and things would pick up. They did but not until WW2.
I guess the point I am trying to make it is a matter of luck, timing, and be willing to struggle at times and do pretty good at times.
I am not smart enough to predict the future. It seems with lower crop prices and interest rates might be going up sometime land prices will not continue the upward.
One thing though, land going back to the 1950s has always seems to be too high for the time. It has eventually always gone up. Will this trend continue, I do not know. There are way to many factors to consider to list in one post.

tbish · Feb 25, 2014

Trust me if u get a straight answer on this topic
I'll be amazed just look around your neighbor hood
500 000$ combines 250 000$ tractors there's money to
be made corn is falling its going to get tougher
cattle market is good now don't put your eggs all in
one basket work hard be smart up make it

newfarmer9 · Feb 25, 2014

There are thousands of variables to consider based on your personal situation, equipment, fuel, local specifics, etc. so I wouldn't want to speculate too much. Just doing some quick math, if I didn't have land expense (land bought and paid for and no land rental, equipment bought and paid for) I would have had a net of around $375CAD per acre on soybeans @45BPA. Just doing some quick estimating (I don't grow corn) but at 175BPA corn I would be around $485 net per acre. These would be prices at harvest time. Of course, one major machinery breakdown could eliminate a significant portion of net income on a small acreage.

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