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Post by MoBuckChaser on Oct 4, 2018 20:48:14 GMT -6
My idiot neighbor in Missouri got talked into going 50/50 with a farmer this year. I told him to take $140/acre cash rent from another farmer, but oh no he did the 50/50. His cost through the farmer was $140/acre this year to plant and grow beans. Because of the drought, the beans may do 30 bushel at best, so he gets 15 bu/acre times maybe $7.50 at the elevator. So he will lose about $25/acre instead of making $140. He didn't take out insurance. What a dumbass!
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Post by benmnwi on Oct 4, 2018 21:20:22 GMT -6
When I first bought land I asked my buddy's dad who was a beef and grain farmer about crop land rental options since I wanted a piece of that $5 corn. He said the same thing as mo- get cash rent. Let someone else take the risk and send you the rental check.
I have a contract with the farmers renting my properties to spell out what is left standing and what they take.
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Post by jbird on Oct 5, 2018 8:51:34 GMT -6
No WAY I would consider farming. Way to much over head and equipment cost and in my area, if your not farming 1,000 to 1,500 acres your aint worth talking to. So you fall to the bottom of the list from a perspective of having someone spray or side dress your fields and the like if you out source certain aspects. The "fmaily" farming is gone in my area. Sure it's still physically there, but hardly anybody still farms just their 100 acres any more here. The economies of scale just don't allow it to be profitable to the point of making a living. Most folks who do it have real jobs and then farm essentially for a little extra coin and that's about it. Most simply sell most of the equipment and rent the tillable now. Far easier, far less risk.....
I also agree in that having a separate plot is better OR you need to have some sort of means to make sure some combine driver doesn't "forget". It happens and they are busy and just go,go,go.....and your "plot" is gone.
We start seeing 4 and 5 dollar corn, you will have far more competition for land and thus should drive your rental prices up.
Sometimes I plant my own corn plot, sometimes I have my rental farmer do it. In most cases I prefer to do it myself simply because of the satisfaction that comes with it. I spend far more time doing it because of the scale of my equipment, but I guess it all depends on what your time is worth and the like.
You plant a couple acres of corn with the old school equipment a few times and you will get a far better appreciation for what those old school farmers had to contend with!!!! I have used a 30hp tractor, 2 bottom plow, 6' disc and a 2 row plate planter.....and I just don't see how they planted 100 acres that way!
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Post by Bwoods11 on Oct 5, 2018 9:00:20 GMT -6
I am not considering farming. My renter asked if (down the road) if I'd consider him custom farming my land. Basically I see very little upside, unless corn in $5 a bushel, which is might be down the road?
Who knows. Either way, upfront cash rent in much easier to deal with and if corn does jump to $5, I will increase the rent by $25/acre?
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Post by jbird on Oct 5, 2018 9:23:48 GMT -6
I am not considering farming. My renter asked if (down the road) if I'd consider him custom farming my land. Basically I see very little upside, unless corn in $5 a bushel, which is might be down the road? Who knows. Either way, upfront cash rent in much easier to deal with and if corn does jump to $5, I will increase the rent by $25/acre? Sounds to me like he wants to shift the risk from him.....to you! Maybe I'm not understanding properly, but to me, it sounds like he wants you to pay him to farm the ground (just like you pay someone to mow your yard).....you then assume the risk of the sale price of the grain. Is that what he is talking about? My renter come to me with that.....Nope, no way, no how! Way too much burden, risk and headache in my opinion. I'll turn my fields into CRP if at all possible before I do that! "Custom farming" in my area means you the land owner hire someone to plant, someone to spray, some one to harvest. You cash flow the entire thing. You have to hire someone to run grain to the elevator and the like.....anything you yourself are not capable or willing to do. You become a general contractor of your farm..... Even if corn becomes $5, all the other costs to produce it will increase as well. It's just the way it works. Fuel costs, fertilizer costs, seed costs, storage costs all of it will all increase..... Also keep in mind - if he goes this route, you may not be his only customer. Bob down the road may use him as well and if Bob's place is bigger and provides a bigger check....Bob's place becomes the priority..... What happens if he only does planting or harvesting? Then you have to find someone else to do the other. Sounds like a huge pain in the ass and a great way to get screwed over..... You want to piss away a fortune of money? 2 great ways to do it.....go racing and go farming!!!!
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Post by Bwoods11 on Oct 5, 2018 10:01:20 GMT -6
I agree Jbird, yep shifting the risk. I also do not know if the bushels would be accurate? Would he fertilize properly, etc...
The best part about my farm is he (the renter) has tillable land behind my farm (landlocked) and one way to get in--through my farm. When I bought it, I factored that in. He has to pay a bit more to rent my land or he will lose access to that tillable.
There is no recorded easement for him.
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Post by jbird on Oct 5, 2018 10:37:07 GMT -6
I agree Jbird, yep shifting the risk. I also do not know if the bushels would be accurate? Would he fertilize properly, etc... The best part about my farm is he (the renter) has tillable land behind my farm (landlocked) and one way to get in--through my farm. When I bought it, I factored that in. He has to pay a bit more to rent my land or he will lose access to that tillable. There is no recorded easement for him. Lots of things to consider..... Lots of places to shave a little here and there and all of the sudden....your taking a loss! I am not a risk taker. I don't do shares....I don't hire custom farming.....it's a straight cash rental contract. I get 2 checks a year come hell or high water. Maybe a guy could make a little more other ways....but it's not worth the headache to me to see if I'm getting screwed at every turn. That is odd there is no recorded easement....is he aware of that? That property will have very little value to the rest of the world if they can't get to it. And that sound like a real expensive easement to gain if you ask me!!!!
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Post by MoBuckChaser on Oct 5, 2018 11:32:10 GMT -6
I agree Jbird, yep shifting the risk. I also do not know if the bushels would be accurate? Would he fertilize properly, etc... The best part about my farm is he (the renter) has tillable land behind my farm (landlocked) and one way to get in--through my farm. When I bought it, I factored that in. He has to pay a bit more to rent my land or he will lose access to that tillable. There is no recorded easement for him. You can't blame the farmer for wanting to shift the risk. But you have a huge capitol investment that he gets to benefit from, you should get to benefit more, its your money! Cash rent up front!
And I am a farmer!
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Post by batman on Oct 5, 2018 11:51:23 GMT -6
I bought crop insurance on my deer farm in case they did not reach 200 inches this year. I expect A big fat check soon.
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Post by Bwoods11 on Oct 11, 2018 12:27:33 GMT -6
So Brazil is nearly out of Soybeans, and may buy some from us? I see a squeeze coming in the next two years. Farmers holding beans in bins because of the low price, fewer acres planted due to low price...other countries low supply due to China shift.
Just a hunch but I bet $10+ beans are back in 19 or 20
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Post by MoBuckChaser on Oct 11, 2018 15:41:58 GMT -6
So Brazil is nearly out of Soybeans, and may buy some from us? I see a squeeze coming in the next two years. Farmers holding beans in bins because of the low price, fewer acres planted due to low price...other countries low supply due to China shift. Just a hunch but I bet $10+ beans are back in 19 or 20 I have sold more beans in my life time for less than $6 a bushel than I have for over $6.
Don't ever try and out think the market. Buy bean calls rather than hold beans.
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Post by Bwoods11 on Oct 11, 2018 19:10:58 GMT -6
Buy cheap tillable ... if a guy can find it.
More of a land owner than a commodity trader
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