Prospecting Methods for Rental Ground

Hey all,

What methods do you use for prospecting new rental farming ground? I have run ads on local online classified sites, in the local paper and in the regional farm paper. In 3 years of looking I have only gotten a handful of responses from this ad, most responses from people with 1-2 acres of marginal ground far away who think they should be able to get the same per acre rental as a 100 acre cleared and tiled farm.

The land market around here is tight with not much ever coming up for rental or sale, but I figure I should have gotten more response by now. Do I need to go door to door? Make up mailbox flyers? What methods do you use?

I found my renter (50) acres on craigslist. I also found our bull and lots of hay from craigslist.

Land rent is based on supply and demand. With record high grain prices the last few years the demand for land is higher than the land availability. With grain prices falling there will be land come up for rent. You will have to be ready to step up and pay for it to get it. The hot rental market has made spring pay be pretty darn common around here. Meaning you pay 100% of the rent on March first.

You need to keep your ad in the local paper. The online ad is fine IF it is free. Remember most land owners that rent would not be internet junkies. Regional papers are waste of time and money. Then I would make up fliers and put them around locally. Feed stores, Equipment dealers, Coops, etc. Basically any place older land owners might see it.

Also if your just starting out it will take years to build up much ground. My sons are renting ground my Grand Father started renting 60 years ago. They are known and have actually turned down a good bit of ground this year. The rental prices where too high to even think about breaking even let alone make any money. Time and patience is what it takes to find ground.

I am not just starting out, I have farmed for several years. Just trying to expand. I know what you mean about high rental rates, we have a couple of guys around here paying per acre rents that make your head spin. At the same time though I know where there are farms rented for 1/2 that rate or share cropped. I hear a lot of complaints from landowners about share crop arrangements but then none of that share cropped land ever seems to come up for rent.

Newfarmer: Several years of farming is just starting out to most landowners. Many want to see their land farmed a certain way and are leery of beginning farmers. Also it is getting to be just a money game these days with many landlords. So you either pay to play or not. We chose not. We will expand the livestock if we have to before we pay too high of cash rents.

Flyers in coffee shops, churches, community centers, and casino bus stops! LOL

Be prepared to sell your self and your
farming method. Evan though I was offered
one of the highest rent at the time I
turned it down. The guy offering it did end
up getting it. But when I rented it I
wanted to know how he was going to run the
farm. A good renter will increase the
value of your land a poor renter can ruin
your farm in a hurry. We have land
speculators around here that will buy
farm's bulldoze everything thing and rent
to who ever they can looking for a quick
buck. Take time and ask around find the
older retired farmers that still value the
land. The big selling points to me was the
guy was young a multi generational farmer
it's nice to see grandpa's truck had
children's seats he always shows up with a
rug rat or two. There planning is also nice
there not afraid of thinking outside of the
box as in adding in extra value by selling
seed and setting up a seed operation to
keep the hired man busy in the winter.
Prepare a summary on what you want to do
show how your going to farm. Sometimes if
people can see if your in it for the long
haul it might be a good selling point. This
year the guy I rent to did some bulldozer
work and lime spreading he can get those
done cheaper and better than I can so I use
that to offset a lower rent it increases
the value of my farm but because he leveled
out an old ravine it made it easier for him
to farm. Same with lime he bought a larger
amount at a discount for several farm's
that way I got the lime cheaper and it
helped his fertility.

I'm a small newer guy myself. I started with
15 acres i rented from a friend's mother. I
asked her about it and she gave me a shot.
Around here, it's next to impossible to grab
the bigger chunks of land, so I've focused
on the smaller stuff. A few winters ago, I
sat down and got land owner information off
the county website that also shows gis maps
so you can measure off exactly how much was
there. I sent out 1/2 dozen or so letters
explaining who I and my wife were (both have
lots of experience) and telling them how we
were trying to grow our small farm. Threw in
rent offers to a couple i was quite sure
weren't getting paid fair. Picked up one
field right away. Just got an email this
spring saying I was next in line for another
field because of a death. Both because of
the letter I sent out. Had a guy call me
wanting alfalfa in a small field. Knew I
did some hay and had smaller equipment.
Picked up another field the same way. Said
he was tired of staring at corn all summer.
Some people just don't like the big guys.
Gotta just get your name out and ask. It's a
slow process, but people take notice and
have been surprisingly loyal and receptive.

Like most things, you can earn it or you can steal it.

Going to funerals and asking the widows about renting land is kinda frowned on, but happens more than you would think. Getting a rich relative to bankroll you and offer $100 an acre more rent than normal also gets you a bit of talk in the neighborhood.

Earning it takes time. Wife and I are almost too old to enjoy it, and the neighbor came by with an offer to sell me 55 acres this spring, touching my land. Strange deal but they liked me as neighbors, would rather have me own it than risk it going on the auction block. As JD says, land gets rented for 30-40-60 years to the same farm family, hard to break into that ethically. If you are under 40 you are a young kid to old retiring farmers, not sure you're proven yet.... And so one.

I'm a quiet by myself type of person, of late a friend got me involved in grilling for the pork producers (I don't raise hogs) and I've been at different coops and farm/city club meetings serving food and so forth. I see now this is a good way to meet people, have good conversations many end up hearing in the grape vine, and so forth. Nothing would come of it in a year, but over 5 years, you might get yourself out there as a nice, volunteering, good kid that a landowner should consider, and a few 100 landowners now saw your face, sat down and gossiped over who you are at the gathering...... Stuff like this will cultivate a network of getting yourself out there and remind people some nice guys are atill out there, if/when they feel the urge to change renters.....

It takes time.

If we are following the 1980s with dropping prices in g, I presume you have a real job and are in a stable financial position. You might want to consider dropping land prices the next 4-5 years and opportunities might open up to buy land at a discount. -iF- you have your ducks in a row and can jump in on a land purchase, when times get ugly bankers flock to those that can buy with a lot of cash in hand. Its rough, but you can set yourself up with good assets with a real job and be in a better position than others to buy a few random small parcels in the tough times. Owned land pays off a lot better - you need less acres - and makes you more stable as a farmer and more appealing to landlords. Its not easy, but we are in an economic climate you might want to think hard on these lines.

Paul

WOW! A lot of sage advice!

Good friend who started out about 30 years ago with nothing did basically most of what's mentioned. He would also just drive in, knock on doors and introduce himself. For a long time almost everything he farmed was rented ground but finally got himself in the position to start buying land about 10 years ago. The first piece was a 160 acre field. He'd rented it from a retired farmer for years. When the guy died his widow called Gary and offered it for far less than what she could have gotten for it because Gary had always taken the time to sit with her husband explaining what he was doing and future plans. He also has a reputation of taking care of the land. Gary is now farming about 1500 acres.

Rick

I know what you mean. My father-in-law died at 7:30 one evening. At 8:00 the next morning a nearby BTO knocked on the door and told my mother-in-law if she wanted to sell the farm he'd write a check on the spot. She told him to get lost.

BTW, that same BTO overextended himself and went kaput a couple of years later. So, I agree with the fellows who say picking the renter is as important as the actual price involved.

That's what I'm doing with my renter.
Include in the rent is the renter has
first chance to buy the farm at reduced
price if something should happen to me.
It's nice to hear stories like yours you
always hope that giving someone a chance
will be appreciated.

Unfortunately around here the way you farm means little to nothing. With land rents around $300-$350 on average land owners only see the $$. As long as they get their cash in the spring and fall they don't really care how the ground is farmed.