# Land rent



## endrow

There are 2 -100 acre parcels coming up for bid in my neck of the woods will be five year contracts. Half decent row-crop land not capable of irrigation . On the high end and could do 225+ bushel corn but on the average if you miss a shower or two or it would be closer to 175 bu. Will things get better in the next five years, what should you bid , ,are you hearing any land rents dropping in your area.


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## haybaler101

If it was here, it will take $275 to play.


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## swmnhay

Renting based on hopeing prices will rally would be the exact same thing as buying on the board of trade and hope the price goes up.Actually buying on the CBOT would be less of a gamble and a lot less work.You would be gambleing on weather also.

Things could be better and they could be worse.

Had a guy just ask me about his moms ground,rentor wants to pay less next yr and this guy thought they should have more then the current $250 acre.So I got the calculator out and punched some rough numbers in for inputs and corn at $3.50 @ 180 bpa which i would expect for an avg off that farm 160-200 depending on the yr.I came up with $190 acre rent is the max I could pay to cover costs.If I put $3 corn in I could pay $100 acre.

I told the guy he should rent it from his mother and farm it if he thought it worked at a higher price.


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## swmnhay

haybaler101 said:


> If it was here, it will take $275 to play.


Pretty good way to put it,LOL.

Last spring here some changed hands at $400 two BTO's dukeing it out.

On the other hand my banker told me they would only go to $250 on any financed rent.Some guys are just burning up equity from the $7 corn yet just to rent it.


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## hillside hay

Who would be your competitors? I Guess you probably have observed theM at sales prior and have an indication of how far they'll go. Some folks will expand at any cost hoping to lock it up for the future. Others need to make every acre pay every year. I fall in the latter category by the way. I couldn't go more than 125. I'm out of the running I guess. Haha


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## endrow

I was thinking about bidding the one 100 acre tract on the high side. I know if we take it out of row crops and put it into mixed hay we could make it. I am very worried about herbicide residual / carryover. The land hasn't seen anything but corn or beans for 15 years.


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## endrow

From what I've seen here lately bidding aggressiveness on farmland has backed off a bit


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## carcajou

endrow said:


> I was thinking about bidding the one 100 acre tract on the high side. I know if we take it out of row crops and put it into mixed hay we could make it. I am very worried about herbicide residual / carryover. The land hasn't seen anything but corn or beans for 15 years.


Is that something you could soil test for, prior to bidding on the land?


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## endrow

To late I already bid. I will have to talk to the previous tenant and see what herbicdes he used in the year 2015


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## Thorim

endrow said:


> To late I already bid. I will have to talk to the previous tenant and see what herbicdes he used in the year 2015


Good luck I hope you have the winning bid...


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## haybaler101

Neighbor just rented 613 acres at 300+. Heard price from back up bidder cause I think he was in the $290's.


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## deadmoose

haybaler101 said:


> Neighbor just rented 613 acres at 300+. Heard price from back up bidder cause I think he was in the $290's.


What do corn and beans have to be @ to break even on that kind of rent?


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## somedevildawg

haybaler101 said:


> Neighbor just rented 613 acres at 300+. Heard price from back up bidder cause I think he was in the $290's.


Dry or irrigated?


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## bbos2

deadmoose said:


> What do corn and beans have to be @ to break even on that kind of rent?


I'm going to guess corn at 4$ and 200 bpa Would cover input expense. That's not including machinery costs or labor. Seems a little steep even when running conservative numbers...


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## haybaler101

somedevildawg said:


> Dry or irrigated?


Dry, but decent dirt for the area.


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## haybaler101

bbos2 said:


> I'm going to guess corn at 4$ and 200 bpa Would cover input expense. That's not including machinery costs or labor. Seems a little steep even when running conservative numbers...


My thoughts too, I think they are working on the theory of already gave too much equipment and labor, so just spreading it over more acres. Going to let land they already own or rent cheaper cover those expenses.


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## swmnhay

haybaler101 said:


> My thoughts too, I think they are working on the theory of already gave too much equipment and labor, so just spreading it over more acres. Going to let land they already own or rent cheaper cover those expenses.


Liars figure and figures lie.A loss is a loss no mater how you figure it.

it's more like they just want it to farm more and say they farm more.And just hope the prices go up.


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## haybaler101

swmnhay said:


> Liars figure and figures lie.A loss is a loss no mater how you figure it.
> it's more like they just want it to farm more and say they farm more.And just hope the prices go up.


And that is the bottom line!


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## PaMike

I hear people talk about more acres to cover fixed expenses. I do believe that is true on the smaller scale but you also wear out that BIG tractor that much sooner...and the tires that much sooner etc....


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## swmnhay

PaMike said:


> I hear people talk about more acres to cover fixed expenses. I do believe that is true on the smaller scale but you also wear out that BIG tractor that much sooner...and the tires that much sooner etc....


Had a guy tell me they couldn't help but make $ when they rented some more ground because they already had the eq so it wasn't a cost.


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## Thorim

swmnhay said:


> Had a guy tell me they couldn't help but make $ when they rented some more ground because they already had the eq so it wasn't a cost.


Most be that new math their using (common core)??????


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## deadmoose

Ask 10 accountants about the same scenario...

How many are gonna come up with the same answer?


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## endrow

Lower land rents cars many landlords who own the farmland to want to get out of the business


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## mlappin

swmnhay said:


> Had a guy tell me they couldn't help but make $ when they rented some more ground because they already had the eq so it wasn't a cost.


 bullshit, still have to cover maintenance cost of covering more acres and the extra fuel.


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## deadmoose

endrow said:


> Lower land rents cars many landlords who own the farmland to want to get out of the business


That's too bad. Ruined a beautiful field.


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## Vol

endrow said:


> Lower land rents cars many landlords who own the farmland to want to get out of the business


That soil looks pretty red to me.....I am surprised somewhat....did not know that it extended that far North.

Regards, Mike


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## stack em up

Renegotiated our land rents for next 2 years. Dropped $10/acre. I was surprised landlord went with it as he really liked his Ice Castle ice house and wanted the larger one...


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## endrow

Had good news today bid on a nice piece of dirt in the area 97 acres of row crop land and I thought I went a little conservative with bid and was high bid,what a surprise. So while I was gloating I thought to myself maybe this is going to calm things down a bit . Just got a text from my buddy in regards to some super productive flat dark dirt about 122 acres read bids today $606.00


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## swmnhay

endrow said:


> Had good news today bid on a nice piece of dirt in the area 97 acres of row crop land and I thought I went a little conservative with bid and was high bid,what a surprise. So while I was gloating I thought to myself maybe this is going to calm things down a bit . Just got a text from my buddy in regards to some super productive flat dark dirt about 122 acres read bids today $606.00


they want some more for $605.?allup front though


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## haybaler101

I hear you, I have 200 tillable that I own. I will even knock off the $6. Just raise my turkeys and use the 120 grand for pocket change.


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## glasswrongsize

Wasn't that long ago (15-20 yrs) that 606 RENT price would have been the price to OWN this soil (if you wanna call it that) around here. Gave less than 3x that to buy this place about 4 years ago. That must be AWFUL GOOD soil or so far back in the woods they are growing a better "cash crop" 

73, Mark


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## deadmoose

Dangit Mark! Still out of likes.

Let's do some math...

$4 corn, with 0 input or harvest cost, needs to produce over 150 bushel to break even.

What are they growing there?


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## haybaler101

Heard some here went for 450 but it is going to melons.


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## glasswrongsize

deadmoose said:


> Dangit Mark! Still out of likes.
> 
> Let's do some math...
> 
> $4 corn, with 0 input or harvest cost, needs to produce over 150 bushel to break even.
> 
> What are they growing there?


I'd offer you some of my likes, but some of my rants must have POed the people who run this site...they've got me on starvation rations of likes now. Ran out earlier today right about noon. The above is number 8 since then. Supposed to have thirty, but I think I run out about 10 or so...GRRRR. Keepin count til noon tomorrow...using sparingly till about 11 tomorrow then, watch out. I'm gunna like the crap out of stuff if I have any left, just so I know how many I got. My new laptop is gunna look pretty funny with an old bale counter pop-riveted to the side so I can keep track from now on.

Some days there is a LOT of stuff that I don't necessarily want to reply to or add my >.02 but want to let the poster know that they have left info which was valuable to me...or just made me chuckle. DOn't get me started AGAIN...

Aw heck...606? Rent that cheap, the ground is prolly fulla WEEDs...green as a bullfrog and sticky as glue. Might should rent it for $420.

73, Mark


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## glasswrongsize

haybaler101 said:


> Heard some here went for 450 but it is going to melons.


There's prolly a joke there somewhere

73, Mark


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## deadmoose

Must be it. They bid on it while pretending it was 4:20. They must be smoking something to pay that much?


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## mlappin

Dry fertilizer prices are dropping like a rock, potash is down a $100/ton here, liquid is expected to come down, rent has to follow as well. Was told to wait before buying any bulk fuel as $1.39 is high yet as they expect it to be lower yet.

Suppliers finally realized we don't have $8 corn anymore and the landowners need to do the same.


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## Vol

glasswrongsize said:


> I'd offer you some of my likes, but some of my rants must have POed the people who run this site...they've got me on starvation rations of likes now. Ran out earlier today right about noon.
> 
> 73, Mark


Not so....NO ONE has done anything to your likes....I don't know what the deal is....unless your counting is not "up to snuff"  . We seldom if ever sensor....mostly cuss words. We pretty much let things go on here except vulgarity.

Regards, Mike


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## glasswrongsize

MIke, I know you're right and thanks for correcting me. I forget that I'm not in the coffee shop, and in-writing,people can't tell when I'm just satirically beating my gums. For the record, I have no qualms with this site...even the advertisements, because there are bills have to be paid.

73, Mark


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## SwingOak

I've heard of rents around here anywhere from $80 to $200. The guy I bought my sprayer from last year had retired from glad farming and rented out his irrigated land for potatoes for I think $400. He said he was able to get that much because the fields had never seen potatoes and didn't need fumigation. No way I'd make money renting a hay field at $200/ac.


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## Vol

glasswrongsize said:


> For the record, I have no qualms with this site...even the advertisements, because there are bills have to be paid.
> 
> 73, Mark


I would hardly call what we have to deal with here as advertisement/bill paying......more like wholesale ad prostitution. :angry:

Regards, Mike


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