My CCRP is up for renewal this year and I need to decide if I want to enroll my tillable in a 10 year contract or 15 year contract. Windbreaks require a 15 year contract which if I chose a 10 year contract on my tillable would mean the contracts would expire at different dates. Rental rates are the same for a 15 year as a 10 year and with inflation it would make more sense to chose the 10 year as rates would most likely go up for a higher renewal rate in 10 years. I have 52 acres in CCRP tillable. I have an additional 7 acres regular enrollment CRP up next year. What are you signing for contracts, do you try and keep your contract expiration dates the same? Do you keep your tillable contracts to 10 years for a better rate at renewal or are you locking in 15 years? Thanks!
CRP Contract Length, 10 or 15 years?
- Thread starter Freeborn
- Start date
remy3424
Well-known member
We did 15, no guarantee they will even offer these conservation programs in the future. Inflation and the payment rates might not have much to do with each other. Get it in and enjoy it. People, even sportsman, get hung up on the money. Place a price on the enjoyment you will get from that area and add that to the program payment....it makes things look better. Hope it works out for you.
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cyclonenation10
Well-known member
Grappling with the same decision now. I tend to side with remy on this one - would rather take a (potentially) smaller payment that is locked in for longer than hope these programs are offered in the future, and also at a higher rate.
cyclonenation10
Well-known member
I know the current program we are looking at pays about $50 less per acre than it would have last year. Only 3 tiers instead of 5 now, no 10% inflation adjustment, and no incentive for seeding type, or something like that.
I have some in both maturities. It is the classic bird in hand/bird in bush. Tell me what 10 years will bring and I can say which is correct.
If a new farm bill ever gets written the maximum rent may increase. Farm prices stay where they are the current rental rates may look pretty good in the future. Something comes along to boost farm income today’s rates might seem paltry.
Many times making a decision and forgetting about it is the best advice. Time may prove you to be a hero or a heel, welcome to agriculture.
Best wishes.
If a new farm bill ever gets written the maximum rent may increase. Farm prices stay where they are the current rental rates may look pretty good in the future. Something comes along to boost farm income today’s rates might seem paltry.
Many times making a decision and forgetting about it is the best advice. Time may prove you to be a hero or a heel, welcome to agriculture.
Best wishes.