# Got a call the other day on 90 acres.....



## JD3430 (Jan 1, 2012)

So lately Ive been bush hogging some fields for a local big developer. Interesting very elderly guy. Builds a lot of homes-uses no borrowed money, even on 100 acre farms he buys.

He called me the other day and asked me if I'd want to "farm" about 90 acres in a farm-heavy part of my area, about 15 miles from me. He went on to tell me he bought the parcel about 10 years ago before the RE bust from a local farmer and planned to develop it. He said that he had about 4 million into the land and developing/engineering costs.

Up until last year, he was renting the property to a local corn farmer. He decided to begin to apply for permits to begin installing roads. Soil tests were required. He found that his soil Nitrates were too high-about "10" he told me. The limit was 4, I think is what he said.

He did some poking around and found out the corn farmer had, naturally been applying HUGE amounts of mushroom soil to the property every winter. He estimated it was applied as much as 10" thick for several years. And that over-applying this much mushroom soil could easily be contributing to the high Nitrate levels.

3 test wells were drilled and water is being monitored in them. Until levels drop below "4", he cannot build.

He kicked the corn farmer to the curb after 2015 season.

Land currently looks like a corn field that was harvested and walked away from.

Soooo, he asked me if I wanted to "plant hay" on it and rent the property from him for a modest per acre amount. He said he was told haying the land will reduce nitrates.

Would planting and harvesting hay remove nitrates from the soil faster than letting it sit, grow weeds and be bush hogged 1x/yr?

Should I pursue this offer? I dont know how fast the nitrates will drop, but even if its in 3 years, even if just mushroom hay, I estimate $45,000 gross profit. From that, I must take out costs to have the 90 acres planted. I dont know what that will cost, but maybe you guys would know.

I'd probably plant whatever grows quickly and holds up well.

OK, flame suit zipped-let me have it!!!


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## PaMike (Dec 7, 2013)

First I would ask around and see if his story holds true or if he is trying to get you to plant erosion control grass on his ground one your dime. In my neck of the woods I haven't heard of issues with nitrates, test wells, soil tests, etc, but who knows. I can tell you right now I am right at $70/acre for seed,$12 an acre for no till drill rental, plus time, fuel and tractor use...looking at close to $7500 to seed the 90 acres, and that really should have been don't a couple weeks ago...

You better get a multi year lease, or have him pay for the upfront seed costs...

As far as the mushroom soil, I have a hard time believing the mushroom compost was spread several inches thick. That's a HUGE volume to haul in and spread...


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## mlappin (Jun 25, 2009)

What kind of soil and what's the drainage?

If it wasn't he wants nitrates to drop I'd plant alfalfa, but thats just me and in our area you can't hardly give straight grass hay away.

Maybe plant timothy and see if you can get some horse customers to buy round bales?

I'm selling 2nd cutting round bales to a vet who does embryo transfers, he keeps about 25 brood mares around, $80/bale and he comes and gets it.


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## swmnhay (Jun 13, 2008)

I would guess he was applying a lot of Nitrogen either anhydrous,urea,or liquid. also probably over applying if it was getting into the water.Combo of the 2 is probably the culprit.

He probably won't allow any more N applied and you won't have optimum yields with out it esp in a yr when the N levels start going down


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## somedevildawg (Jun 20, 2011)

I'd walk from that offer.....


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## JD3430 (Jan 1, 2012)

Yeah it sounds shaky to me, too.


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## sethd11 (Jan 1, 2012)

3-5 year Contract. Get your own from a good lawyer. Tell him the situation. It's got the possibility for A lot of money so you probably don't want to give it up that fast. I've seen similar situations around here


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## swmnhay (Jun 13, 2008)

If you are worried about loosing it after seeding it Plant it to a annual like annual ryegrass if it would work for mushroom hay.

Disk it couple times.Drill in the seed.Harvest 2-3 cuttings.

Seed 10-20 lbs an acre @$1 a lb would be cheap.

Depending on fertility could get 3-6 ton acre.I get 5-6 ton with 50 lbs of N.


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## JD3430 (Jan 1, 2012)

PaMike said:


> First I would ask around and see if his story holds true or if he is trying to get you to plant erosion control grass on his ground one your dime. In my neck of the woods I haven't heard of issues with nitrates, test wells, soil tests, etc, but who knows. I can tell you right now I am right at $70/acre for seed,$12 an acre for no till drill rental, plus time, fuel and tractor use...looking at close to $7500 to seed the 90 acres, and that really should have been don't a couple weeks ago...
> You better get a multi year lease, or have him pay for the upfront seed costs...
> 
> As far as the mushroom soil, I have a hard time believing the mushroom compost was spread several inches thick. That's a HUGE volume to haul in and spread...


If I had seeded a couple weeks ago, I'd probably have a lot of dead seedlings. It's been in the mid 20's at night and we had 5" of snow over the weekend.


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## PaMike (Dec 7, 2013)

Nah, I seeded a bunch a couple of weeks ago and its coming up fine...

Developers are known for their smooth talk and slick gimmicks. I would try my best to make something work, but get it in writing and think about how he could screw you when you make the deal..A rich old developer that pays cash didn't get that way from being nice to everyone...


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