New CRP

M

McFarmer

Well-known member
Signed up a little more CRP, it is a long narrow piece next to DNR ground that gets hit hard by deer and the trees reduce production some. The soil types however are top of the list. With the payments rates I don’t think they will get much good producing ground enrolled.

It would be rented on the open market for $75/acre more. This in NW Iowa.
 
Bless you ror taking that hickey. The feds ag program is way out of whack.they force the farmer to plant unproductive land then reimburse with crop insurance.
 
Frickin commodity prices are going to push rents up even further. A good deed done McFarmer. It take a sportman to place ground in the program with the current rent opportunites, you will leave some money on the table, you have to see the other benefits to having it in the program. Get the corn back in the $3s and rents will follow, act quickly then while average rentals rates are still shown high. Are they paying as a percentage of the county average or by soil type now?
 
You folks are making me out to be some sort of angel which would be wrong. Read it again, if it were out in the middle of a section it would be high producing ground, and not be enrolled at these prices. But, it gets hit by deer and the trees sap light and moisture away, it isn’t producing the way it would elsewhere.

I didn’t look to see how it was calculated, the price was reasonable so I signed up. Certainly wouldn’t have done many acres at that price, or acres that were without hindrances, that’s my point.

As a farmer I’m pretty happy with the commodity prices. Now I just have to sell some, don’t often have these prices following record yields.
 
If you were closer, I have a root plow sitting here that could be borrowed to set back the influence of the trees! Wise decision to not tolerate the limited productivity of those acres and stop losing resources that won't pan out for your income goals!
 
Well, putting those acres in CRP will make the remain acres more desireable if you rented the farm out. If everyone could place a few acres of marginal producing ground in the program, the bird numbers would explode. You did well to hang on to the grain with the current prices....now just figure-out the top of the market when it comes...the toughest part of farming, I would think. Don't be like the joke with the farmer finding the lamp and the genie grants him 3 wishes, one was for $5 dollar corn...later on the same farmer finds yet another lamp and the genie again offers 3 wishes, the farmer again asks for $5 corn, the genie is confused and says, you were already granted that wish, the farmer acknowledges this and says, "well I held-out for $6s".
 
These payment rates won’t attract many acres, they just aren’t competitive.

As was said above, there will be small problematic tracts enrolled like I put in. And for sure if everyone did it there would be a huge improvement in habitat.

Right now I think the days of 80s or quarters being enrolled are not with us. The future is too uncertain. In ten years the payment rate I’m getting might be laughable, that is the worry. If there was some mid-contract adjustment I think that would help in making the decision.
 
Thats a good idea of adjusting the rates during the contract. Could set them to adjust annually to avg rental rate.
 
I was ready to put more in CRP two years ago but the rate went down over 40%. This October it came up just a little, but way short. Will check again this October.
 
Cash rental rates for ground should be pushing up with $6+ corn currerntly. A few years back (it may have changed) you would be offered a percentage (75% maybe?) of the county average rental rate for CRP contracts. That will only attract marginal ground at best. Back when CP-38 was offered, the rate was determined by soil types, but the owner is responsible for the food plots, not what most farmers wanted to mess with, payment rates were very good with productive soils.
 
Crop prices will be the end of new CRP, at least near term.

The way current prices are going I can imagine some folks thinking of paying the penalty and breaking some recent contracts.

Maybe that isn’t still allowed.
 
A few years back I had some CRP expiring and the renewal rate was $31/acre for 15 years. I declined, thinking, "Will that acre even buy a cup of fancy coffee in 15 years?"
 
$31....what would/do you grow on that ground? That would leave less than $20 after taxes here. The mix we planted in the CRP was $130/acre back in Dec 2015...sure hope they cost share...at about 100% for that....a renewal, you wouldn't have that expenses I guess. What would that ground cash rent at? That seems like a rude offer, they must not have wanted any more acres.
 
remy3424 said:
$31....what would/do you grow on that ground? That would leave less than $20 after taxes here. The mix we planted in the CRP was $130/acre back in Dec 2015...sure hope they cost share...at about 100% for that....a renewal, you wouldn't have that expenses I guess. What would that ground cash rent at? That seems like a rude offer, they must not have wanted any more acres.
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At that time, probably $65-70. Speaking of taxes, my farm real estate taxes has doubled in the past five years. No telling what lies ahead.
 
Well my decision to enroll some CRP is turning out to be the wrong one right now. There will be some land coming out early if these prices hold.
I don’t know what the penalty will be but a gross of near $1500/acre for corn in Iowa will be hard to beat.
 
Farmers will have a lot more money at risk then previous years considering this years input costs are crazy high.
 
McFarmer, well on the plus side, you don't need to apply any record high priced nitrogen on those acres...and who khow what yields will be, if we don't get any more rain than last year...so far it is another drought brewing.
 
We did get shorted on the rain last year but it came at exactly the right times. Last year was record yields on very low rainfall.
 
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