Just thought I would post this...I have a few acres of land in East central North Dakota. Like so much of North Dakotas CRP my 15 year CRP contracts have been expiring in 2011 and 2012. I just talked to our FSA lady and she told me the "good news" that my stuff could be reenrolled for another 10 years and that the rate would increase from the $31 per acre they gave me in 1998 to $33 for each of the next 10 years. Meanwhile I have standing offers from the farmer next door to rent it at $60 which I am told is pretty average rents for the area.
I would like to leave the land for the ducks and pheasants, but nobody in their right mind can accept that type of discount. It gets worse, as the new contracts all require discing of 50% of the property in year 5 and the other 50% in year 6. If you add in the cost of the additional work and inflation since 1998 the new contracts feel like they are paying you a lot less real dollars than they did in 1998 and that is not is not even considering that land values are probably 5-10 times what they were in 1998. Very frustrating!
I would like to leave the land for the ducks and pheasants, but nobody in their right mind can accept that type of discount. It gets worse, as the new contracts all require discing of 50% of the property in year 5 and the other 50% in year 6. If you add in the cost of the additional work and inflation since 1998 the new contracts feel like they are paying you a lot less real dollars than they did in 1998 and that is not is not even considering that land values are probably 5-10 times what they were in 1998. Very frustrating!