land rent

haymaker

Well-known member
A guy that I rent some land to just rented 9 quarters of land by bid for about 50% more than he pays me, and I thought I was well paid. I do not see how that is going to work but CRP is not even in the ball park here. I am amazed.
 

1pheas4

Super Moderator
Yeah that's an issue.

Where do you see land rent/prices going in the next year Haymaker? Despite crop prices being down, do you see it still going up--in general?

Nick
 

haymaker

Well-known member
Yeah that's an issue.

Where do you see land rent/prices going in the next year Haymaker? Despite crop prices being down, do you see it still going up--in general?

Nick

I thought they would be going down, but there have been two tracts of land that have been rented by sealed bids that have gone much higher than last year. I have two sons that I am renting cropland to that I don't know how they can make a profit on. I am renting it to them $75 dollars an acre less than what I apparently can get. I don't understand it. Maybe these guys are willing to take a hit for a year in hopes of having the land when prices do come back.
 

BRITTMAN

Well-known member
Fuel and chemical cost should be significantly lower if the current trend is sustained.

Diesel fuel is slower in cost down than unleaded, but it should go down.

Chemicals are mostly derived from the petrochemical industry and should also retreat in price where competition is present.
 

esetter

Member
Just curious , what are rent prices (dont have to tell me exact , im not nosing into your income) but a general figure for good crop land? What does CRP pay?
 

haymaker

Well-known member
Just curious , what are rent prices (dont have to tell me exact , im not nosing into your income) but a general figure for good crop land? What does CRP pay?

I checked with FSA awhile back, they said about $85 an acre. The two tracts that I talked about are over $150 and $180 an acre.
 

haymaker

Well-known member
Yes the easy thing to do would be to sell the cows and machinery and rent it all out. If I did that I would die of boredom in a year.
 

3car

Member
my 1 cent on this subject is that crop ground should come down but pasture ground should remain were it is at for a while. The lack of pasture in our area makes it very valuable. Land is too high right now and should come down with corn prices being as low as it is and now fuel costs are lower.
 
Top