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How much per acre can....

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caleb

08-05-2007 22:40:29




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heres the thought. I am looking into some land that is currently in corn now. If i buy it I would like to keep the rental going but what could I expect to make? Its about 40 acres. I'd like to know about what per acre, its in Burleson county and its irrigated. As always thanks for any and all replies. Caleb




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John A.

08-06-2007 05:50:31




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 Re: How much per acre can.... in reply to caleb, 08-05-2007 22:40:29  
caleb, Since you are down in the Bryan/College Station/Caldwell area.....Go visit with 2 or 3 local Coop managers, see what they say!! Then go to the USDA/FSA....the old ASCS office visit with them they will be able to give you a rent range. Also if that 40 acres is enrolled in the farm program you will know. they can give you the particulars on it. If it is then you will know it it is eligible to be enrolled in the farm program,It very well may allready be! If not then it is a renagade piece that will Not get , nor be able to get any help at all. (no Gov pmts) then that may change your thoughts on the matter. Hope this helps.
Later,
John A.

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Dave from MN

08-06-2007 05:05:12




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 Re: How much per acre can.... in reply to caleb, 08-05-2007 22:40:29  
Around here (central MN) non irrigated sandy soils go for $15-$50/acre, heavier black soils getting $40-$60/acre. Irrigated getting $160-$220/acre. If you rent it out I would do it on shares and make sure renter notifies you of ANY programs that he plans on enrolling your land in.



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centralilbaler

08-06-2007 08:17:10




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 Re: How much per acre can.... in reply to Dave from MN, 08-06-2007 05:05:12  
Man, guess i should move to Mn. Central IL rent for good corn ground is $190-220 /acre



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georgeky

08-06-2007 07:44:31




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 Re: How much per acre can.... in reply to Dave from MN, 08-06-2007 05:05:12  
Dave, how does the tenant have room to make any money at 160 to 220 for rent? You figure 200 bushel corn at 3.00 is only 600 and that is before seed,fertilizer,fuel and all other expenses.



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James22

08-06-2007 10:27:35




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 Re: How much per acre can.... in reply to georgeky, 08-06-2007 07:44:31  
It requires around $325/acre to grow corn if you don't try to expense all new machinery. With a rent of $200/acre it still leaves $75/acre. Even with only 400 acres, which is really only a part time job in the midwest, it would give $30,000. This income level from only a "part-time" job, would compare to many full-time non-union factory jobs. Further more, a mid-sized farmer might bring to the table an investment approaching $500K. A midwest landowner could easily bring to the table an investment in the millions. The farmer having the lower investment takes the additional risk. Although hydroponics does exist, it would be real tough to farm without land. Machinery, fertilizer and seed have gone up considerably and the farmer continues to pay, so why not land rent? Locally at least they recognise this issue, are willing to pay for this privilege and with rare exception they are prospering. I have a tenant which pays $150/acre for about 500 acres, The yield it now appears will be above 225 bu/acre. He contracted 180 bu/acre at $3.75/bu. Figuring the additional 45 bu at $3.00/bu, and also remember he receives the FSA farm payment which is not be considered, he is going to make $142.5K from farming my ground. He rents an additional 2000 acres and will realize a similar income from those holdings. Therefore I'm anticipating a $30-40 acre rent increase next year.

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georgeky

08-06-2007 11:40:59




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 Re: How much per acre can.... in reply to James22, 08-06-2007 10:27:35  
James, I do understand most of that, but corn has been at 2 dollars for years. Here you are lucky to find a field of 100 acres to put in corn. You would be so scattered out to try and raise 500 acres that just the road time would make it difficult to make it. Of course there is seldom any 200 bushel corn here either. The biggest concern I have is not all crops always do so well. On a bad year the tenant can be wiped out. I haven't rented any corn ground in a few years, but was getting it for 40 dollars an acre the last time I did. I don't think that hydroponics will ever feed this world either.

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James22

08-06-2007 20:25:42




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 Re: How much per acre can.... in reply to georgeky, 08-06-2007 11:40:59  
George
I deserved to be slammed for that somewhat aggressive reply and respect that you had a good opening and didn't press the initative. I've just heard a lot of belly aching about high rents from farmers (not my tenant) that appear to live pretty extravagantly. I don't begrudge anyone making a decent living and honestly will buy more expensive USA products when possible rather than Eastern imports. The rallying motto should be to support the American worker as well as the American soldiers. No doubt some rents are very high; eg, over 1500 acres near Springfield, Ill was rented out at over $300/acre for the next couple of years. But the farmer probably made future sales to cover his costs and no doubt it is some of the most productive land in the world. On-the-other-hand, I can remember not long ago receiving a mere pittance for the 200 acre family farm. The poor farm economy in the late 70's/early 80's decimated the local farming ranks, and the few remaing conspired to keep rents low and would not compete. In the late 90's we were offered $25/acre cash for ground which would consistantly produce 145 bu/acre and often over 160 bu/acre corn. Share rent wasn't any better, they charged $30/acre for combining your share and $.12 mile for hauling. Dad was unable to continue farming, and I was over 400 miles away. Even today this unbridled "highyway robbery" continues unchecked. This "sour" relationship does not abide here. I consider the tenant a friend, which is tough to manage in a markedly finanical relationship. The overriding goal is for all to equally prosper, and "we" have been pretty successful. The rent was established last September and he made a good profit last year and will do so again this year. I expect next year to share in this good fortune, providing current prices continue.

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georgeky

08-06-2007 21:01:51




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 Re: How much per acre can.... in reply to James22, 08-06-2007 20:25:42  
James my main point is that I have rented land in the past and made a little money on it. I also agreed to pay more rent when crop prices were up. When crop prices declined again almost none of my landlords were willing to readjust the rent to allow me to make anything. I am all for sharing in the profits by everyone envolved, but hardly any price difference in the crop from one year to the next is adjusted by anyone except the dirt farmer. Lots of landowners also either inherited land or paid for it some way other than farming it. There are exceptions to this. Just think about that 75 dollars per acre your tenant will or may clear. If he just looses 30 bushels to the acre his shot at a profit is gone. More and more all the time the farmers are expected to raise more for less. Next year corn may be back to 1.80 a bushel. Will you then lower your rent price to allow that guy to keep farming. Most will not. I leased a farm for a few years mainly for the tobacco base. After two years the government raised the tobacco quota by almost 50%. My landlord wanted twice the agreed amount for the lease to continue. I paid it and done OK. The next year they cut quota's by 30% he would not lower the lease any. The year after they cut quota's again by another 30% now there is less than there was to start with and he still wouldn't come back down on the price, so I had to let it go. Now the farm is overgrown in bushes and weeds.

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James22

08-07-2007 07:56:22




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 Re: How much per acre can.... in reply to georgeky, 08-06-2007 21:01:51  
Yes, his yearly rent will fluctuate with anticipated crop prices/crop production(weather factors). Also he knows if things go badly array and will lose money, he can expect a rent rebate covering the difference. Not many can benefit by putting someone out of business, a good example would be the situation residing back home, where only a few benefit.
I'm rather surprised your landlord was unwilling to compromise, in most circumstances it is better to receive a little rather then nothing. But that remains the landowners prerogative.

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georgeky

08-08-2007 01:22:32




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 Re: How much per acre can.... in reply to James22, 08-07-2007 07:56:22  
All the landlords I ever had would work with me except the one. His place has now been sitting for 5 years with no tenant at all. I thought about going to see him and see if we could work out something, but my contrary streak won't let me. Besides, since the boys got jobs I am short handed and have more than I can do now.



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paul

08-06-2007 00:35:08




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 Re: How much per acre can.... in reply to caleb, 08-05-2007 22:40:29  
You'd have to ask local farmers, or possibly the local extension agent, to get any useful reply to that. Depends on the soil type, how well is it maintained, past yields, in or out of farm program, etc. No way for anyone sight unseen to give you anything worthwhile.

--->Paul



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caleb

08-05-2007 22:41:47




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 Re: How much per acre can.... in reply to caleb, 08-05-2007 22:40:29  
burleson county, texas that is, sorry.



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