# Leasing farmland



## CowboyRam (Dec 13, 2015)

I am looking at leasing some farmland to raise alfalfa, I have not net looked at the property yet, I am going to go drive by it tomorrow; it is about 26 miles from our farm. With my conversation with the guy he is wanting enough money to pay the taxes, and half the day. It has about 143 tillable acres with a total of 153 that is irrigated, and a total of 227 acres. From what I understand from the previous guys that have farmed it they could get about four ton per acre. It has not been farm for a few years, and would need to be broke up and reseeded.

What should I be looking out for?


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## hillside hay (Feb 4, 2013)

What are his responsibilities going to be? That would be too dear of a price here. Especially if all the inputs were mine. Sounds like you will have to be establishing the alfalfa as well?


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## Farmerbrown2 (Sep 25, 2018)

I don’t know much about renting land but if you plant alfalfa in my area you will have deer problems. So to get to the point deer hunting is starting to be big business in my area so who gets to shoot the deer/wildlife. Maybe the last guy that farmed it got fed up with feeding the deer and nobody shooting them. I would find out why the last guy gave it up someone has to have the scoop.


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## CowboyRam (Dec 13, 2015)

farmerbrown said:


> I don't know much about renting land but if you plant alfalfa in my area you will have deer problems. So to get to the point deer hunting is starting to be big business in my area so who gets to shoot the deer/wildlife. Maybe the last guy that farmed it got fed up with feeding the deer and nobody shooting them. I would find out why the last guy gave it up someone has to have the scoop.


We usually don't have much trouble with deer.


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## swmnhay (Jun 13, 2008)

Fertility??Is it run down?Who will pay for fertilizer?Soil test before you even start if you have any doubt about the fertility of the soil previous renters could have mined the soil.

Who pays for the seed?

HERE it would be typical to pay half the seed and fertilizer and get 1/2 the hay.Owner would pay his own taxes.

I'd want a written lease for 4-5 yrs if you are going to seed alfalfa and fertilize for it.

He wants property taxes pd plus 1/2 the HAY correct?


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## CowboyRam (Dec 13, 2015)

swmnhay said:


> Fertility??Is it run down?Who will pay for fertilizer?Soil test before you even start if you have any doubt about the fertility of the soil previous renters could have mined the soil.
> 
> Who pays for the seed?
> 
> ...


Yes, that is what he said. I am going to look at it tomorrow. I was looking at google maps the fields look pretty run down. I think it is going to take some work to get the field back to peak production. He was willing to go half on seed and fertilizer.


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## luke strawwalker (Jul 31, 2014)

Sounds like a cash rent AND half the hay?? Wow didn't know you could do that... nobody would go for anything like that around here! Either/or...

Later! OL J R


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## Dan_GA (Dec 29, 2015)

Yeah, you'll lose your backside paying that much, renovating, establishing, harvesting, and then giving up half the take. I'd look elsewhere. I know areas are different, and it is irrigated, but around here more than $20 an acre and owner will be sol on finding someone willing to lease.


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## swmnhay (Jun 13, 2008)

4 ton a acre on irrigated ground doesn't sound very good and would make it more difficult then say 6 ton.

Also who pays irrigation costs?


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## Teslan (Aug 20, 2011)

Is this guy going to do all the irrigation for half the hay? Anything else is not acceptable. 4 tons of hay sounds like maybe he either doesn't have quite enough water, doesn't irrigate or fertilize right. If you are in charge of irrigation and can get him down from his half the hay thing make sure it is a pivot/pumps in good repair. And consistent irrigation water. If it's flood and you have to do it forget about it. 26 miles is a ways for even a pivot, which if it has I'm assuming isn't automated that you could control it with your cell phone. Though for $1200 and a subscription that can be done these days for a pivot. Which might be worth it even if it's out of your pocket at that distance.


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## Teslan (Aug 20, 2011)

Dan_GA said:


> Yeah, you'll lose your backside paying that much, renovating, establishing, harvesting, and then giving up half the take. I'd look elsewhere. I know areas are different, and it is irrigated, but around here more than $20 an acre and owner will be sol on finding someone willing to lease.


If this is a decent farm with decent irrigation and irrigation system he might be around the $150-$200 an acre mark. Maybe more. But that's about what it is a days travel south of Cowboy ram.


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## CowboyRam (Dec 13, 2015)

I went and looked at it this morning, most of it is irrigated with gated pipe, and the rest looks like with tubes. It has not been farmed in several years, I could not really tell, but it looked like the cement ditches were filled up with dirt. could be mostly snow, but I am going to bet that a considerable amount is dirt. The worse part is that it is all weeds, 143 acres of weeds; would have to sprayed, and then replanted. I think he wants to much; there is no money left for me to make anything on it. Here in our area 4 tons per acre is about the best we can do. We can only get about three cutting per year. This place has been really neglected for several years. I am thinking I am going have to pass on this.

On another note, I do have to go look at replacing a roof for this same guy on another property he owns; I am going to go look at it on tuesday. There is good money in reroofing; I have always made out well on all the roofs I have done in the past.


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## somedevildawg (Jun 20, 2011)

From reading the previous posts Cowboy, I'd say you guys can strike a deal....I'm seeing some workable possibilities in your future, be ready and good luck


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## Teslan (Aug 20, 2011)

CowboyRam said:


> I went and looked at it this morning, most of it is irrigated with gated pipe, and the rest looks like with tubes. It has not been farmed in several years, I could not really tell, but it looked like the cement ditches were filled up with dirt. could be mostly snow, but I am going to bet that a considerable amount is dirt. The worse part is that it is all weeds, 143 acres of weeds; would have to sprayed, and then replanted. I think he wants to much; there is no money left for me to make anything on it. Here in our area 4 tons per acre is about the best we can do. We can only get about three cutting per year. This place has been really neglected for several years. I am thinking I am going have to pass on this.
> 
> On another note, I do have to go look at replacing a roof for this same guy on another property he owns; I am going to go look at it on tuesday. There is good money in reroofing; I have always made out well on all the roofs I have done in the past.


ugh tubes. I spend a good month and a half in all total every summer irrigating just 35 acres with tubes. I should just forget irrigating that and go find a 145 acre pivot to rent and have time left over. Gated pipe is ok. But only when it is 1/2 mile away. Not 26 miles. Get him to put a pivot on and make some hay. If he has the water for flood he has more then enough for a pivot. But man pivots get expensive when starting from flood irrigation. The pivot, pumps, ponds if there are none, pipelines, 3 phase power and tearing up cement ditches add up too over $100k very fast. Only then should he expect half the hay. Until then he is crazy to ask that much and you would be crazy to agree.


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## Tim/South (Dec 12, 2011)

It is always educational to read how things work in other areas of the country.

I am with Dan on this. $20 and acre has to be good hay ground here. I have some ground I have made productive. The common deal is to do lime and fertilizer is 5 years free lease.


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## CowboyRam (Dec 13, 2015)

This field is an irregular shaped field, and I don't think it would cost effective to put a pivot on. I think I am going to pass on this, and keep looking for something else. Hopefully I can find something closer to home. I might also try to pick up some custom work. I have been looking for someplace to go with my cows for the summer, and finding pasture has become a bit of a challenge.


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## IH 1586 (Oct 16, 2014)

Tim/South said:


> It is always educational to read how things work in other areas of the country.
> 
> I am with Dan on this. $20 and acre has to be good hay ground here. I have some ground I have made productive. The common deal is to do lime and fertilizer is 5 years free lease.


That was what are rent used to be around here til all the dairy's started expanding. My cousin succeeded pushing land prices over $2000/a and rents above $25/a for *MUD. *He is paying $65 or so for fields we had to pull the SP chopper out of and the land he is buying spends a fortune on putting tile in it and it's still questionable after a heavy rain. $25 is what used to be paid for good gravel.

It is interesting learning how things are done across the country.


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## Dan_GA (Dec 29, 2015)

IH 1586 said:


> That was what are rent used to be around here til all the dairy's started expanding. My cousin succeeded pushing land prices over $2000/a and rents above $25/a for *MUD. *He is paying $65 or so for fields we had to pull the SP chopper out of and the land he is buying spends a fortune on putting tile in it and it's still questionable after a heavy rain. $25 is what used to be paid for good gravel.
> 
> It is interesting learning how things are done across the country.


I think a lot of it has to do with property taxes. Most land owners here just want their taxes covered and land kept up. Taxes are cheap down here in comparison.


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## Teslan (Aug 20, 2011)

CowboyRam said:


> This field is an irregular shaped field, and I don't think it would cost effective to put a pivot on. I think I am going to pass on this, and keep looking for something else. Hopefully I can find something closer to home. I might also try to pick up some custom work. I have been looking for someplace to go with my cows for the summer, and finding pasture has become a bit of a challenge.


Yes those odd shaped fields are why I still do tube irrigation. Now if you could get him to do the irrigating that is a different story. But sounds like he doesn't irrigate it anyways.


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## CowboyRam (Dec 13, 2015)

The cost to lease irrigated farmland here is between $110 to $120 per acre. I think I am going to pass on this one. Here is what I think could very well happen. This guy is going to get someone to bring it back into production and then try to sell it. As it is now he would get docked when it comes to selling.


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## CowboyRam (Dec 13, 2015)

I looked at that roof job. I am not even going to bid it; it looks worse than the hayfield. No cabinets, all the drywall falling off ceiling and walls, windows broke, back door wide open. Talked with the neighbors and I guess it does not have any water. The best thing for that house is five gallons of gas and a match.


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## hillside hay (Feb 4, 2013)

Yep sounds like getting shed of that guy is smart money.


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## CowboyRam (Dec 13, 2015)

I had the landowner call me back the other day; have not had a chance to call him back yet. I am still not sure what I am going to tell him. I am thinking maybe that if I take this on, maybe I should maybe graise it off with my cows for this year, and maybe spray for the broadleaf weeds, and then start replant it next year. Or maybe I should no till in some Italian ryegrass into the existing grass. I am still worried about me getting this ground going and then getting it sold out from under me.


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## Vol (Jul 5, 2009)

If you are worried about a sell out, maybe include a clause in the contract for a financial re-imbursement if that happens.

Regards, Mike


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## swmnhay (Jun 13, 2008)

CowboyRam said:


> I had the landowner call me back the other day; have not had a chance to call him back yet. I am still not sure what I am going to tell him. I am thinking maybe that if I take this on, maybe I should maybe graise it off with my cows for this year, and maybe spray for the broadleaf weeds, and then start replant it next year. Or maybe I should no till in some Italian ryegrass into the existing grass. I am still worried about me getting this ground going and then getting it sold out from under me.


Get a long term lease with stipulations if they break it you get reimbursed for seed and fertilizer costs.Prorated perhaps.Soil test before you agree to anything.


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## swmnhay (Jun 13, 2008)

Vol said:


> If you are worried about a sell out, maybe include a clause in the contract for a financial re-imbursement if that happens.
> 
> Regards, Mike


We were typing at same time,lol.


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