Do's and Dont's Advice

[Newtothis1]

Hello, I've been reading the forum for a while and like all of the knowledgeable info and am making my first post. Any and all help and advice is much appreciated. So here it goes.... I own 50 cleared farm acres that is currently being leased for about $80 an acre. That's about the going rate here in NC. I have a 38 HP 4x4 Kubota, 7 ft disc,2 row plow, a dump truck that I can haul grain with, and access to a set of 4 row planters. I have no interest in specialty crops; just corn, beans, or wheat. What I want to know is everyone's opinion on is if I could make more money investing in a sprayer and cultivator and tending it myself.( I can easily make arrangements to have the crop picked for me.) Please keep in mind that I have a full time job and am not wanting to make a living on the 50 acres, I just think it could be a nice bonus for me since I already have most of the equipment, I have the time, and I enjoy working on the farm. I know the equipment is very small scale but its only 50 acres and I don't care if it takes a little longer or if people laugh.... just as long as I can laugh my way to the bank with a little extra money! Some people tell me I'm crazy not to do it since I own the land. Others tell me I wont be able to make it, but I think they are stuck on the idea that I'm trying to earn a living off of it, when I am not. Please respond with any and all pros and cons and what your recommendations are. I am anxious to see your thoughts and thanks a lot for the input.

 

[paulharvey]

Well, I know there are people who do fine with melons and other crops on small acreage. Ive seen a lot of peanuts that are grown scattered on several small tracks (20 acrrs here, 50 more 3 more down the road, ect) The biggest part to me would be finding out all the details about selling your crop, some crops have allotments, and you probably want to talk to some one in the business, and find out what is subsidized, ect. Without a locked in buyer it's kinda point less,

 

[jaotguy]

not meaning to be negative ... but as everyone in the farming business can tell you,

it becomes a full time job in the end ( even for a couple of acres ) with wear and tear on the equipment and YOU.

if it's just for a side line and extra cash, remember the saying " to make a small pile of money farming , start with a big pile of money "

there are probably easier things to do with your spare time ( and more profitable ) ...

then you still have time to PLAY with your toys whenever you want to.:thumbsup:

 

[TripleR]

My brother and I tried this type of farming to "make a little extra money" and were lucky to break even on small acreage like that. Chemicals, fuel, harvest cost lack of storage, grain dryer etc. just makes the cost of production prohibitive. We cash rent close to 300 acres even though we own quite a bit of equipment. If you can do it, go fo it, I just don't personally know anyone who has with those types of crops.

 

[Newtothis1]

My brother and I tried this type of farming to "make a little extra money" and were lucky to break even on small acreage like that. Chemicals, fuel, harvest cost lack of storage, grain dryer etc. just makes the cost of production prohibitive. We cash rent close to 300 acres even though we own quite a bit of equipment. If you can do it, go fo it, I just don't personally know anyone who has with those types of crops.

I wont have to deal with driers or grain storage with this small amount. i should be able to pick at correct moisture content and haul strait to the grain buyer(only 10 miles away). I guess what I cant wrap my mind around is that an acre cost x amount of dollars to plant and harvest, and profits x amount of dollars, no matter how many or how few the acres. People are telling me due to our long growing season I can turn two crop cycles per year and should be able to clear about $800.00 per acre. Does this sound very far fetched?

 

[Larro Darro]

What kind of crops does your farmer grow now? If it's grains, how many bushels does he get per acre? Ask him about his cost to profit ratio. And find out what it will cost to get it combined. I fear you will be working like crazy, praying for rain, praying for no hail and paying through the nose to buy fertilizer, poisons and fuel, with a hope of breaking even.

If it was me, I would see if your farmer will lease 49 acres and leave you 1 to play on. Grow a garden and don't worry about making or saving any money. To do it right, an acre garden will soak up all the free time you have.

Larro

 

[Newtothis1]

What kind of crops does your farmer grow now? If it's grains, how many bushels does he get per acre? Ask him about his cost to profit ratio. And find out what it will cost to get it combined. I fear you will be working like crazy, praying for rain, praying for no hail and paying through the nose to buy fertilizer, poisons and fuel, with a hope of breaking even.

If it was me, I would see if your farmer will lease 49 acres and leave you 1 to play on. Grow a garden and don't worry about making or saving any money. To do it right, an acre garden will soak up all the free time you have.

Larro

It is currently planted with beans and corn. The corn brings in 150 bushels per acre and i think the beans are somewhere around 60 bushels. Some local farmers that I trust are the ones telling me I should tend it myself. They say I'll make a lot more than what the rent is bringing in and that with the purchase of crop insurance that I would be guaranteed not to lose money.

 

[deerseeker001]

Welcome from Wisconsin

 

[jaotguy]

. People are telling me due to our long growing season I can turn two crop cycles per year and should be able to clear about $800.00 per acre. Does this sound very far fetched?

OK 800 X 50 = 40,000 working your tail off. minus taxes, insurance, etc ....

subtract wear and tear on the equipment .... and you are a full time farmer now .... 7 days a week ... no time off ... no vacation ...no sick leave ... no pension fund .... nothing to fall back on ... ( crop insurance only covers part of the losses ) at the mercy of what the market will pay for your product ( remember, a bumper crop or season = a lower price because there's lots to go around ... and a poor year means less to sell, even at a higher price ... a no win situation these days )

there has got to be a reason that leasing is only 80 / acre .... any more and they wouldn't make enough profit to make it worth while.

Farming is hard work ..... and a gamble at best ... each year brings more restrictions from the fools in big cities , telling us how we can use our land.

plant a small garden , have fun , enjoy life :thumbsup:... get a handle on the real costs and time involved... then make your plans

 

[smstonypoint]

I wont have to deal with driers or grain storage with this small amount. i should be able to pick at correct moisture content and haul strait to the grain buyer(only 10 miles away). I guess what I cant wrap my mind around is that an acre cost x amount of dollars to plant and harvest, and profits x amount of dollars, no matter how many or how few the acres. People are telling me due to our long growing season I can turn two crop cycles per year and should be able to clear about $800.00 per acre. Does this sound very far fetched?

Yes!!!!!!!!

Have you looked at the costs of producing corn, wheat, and soybeans and their current futures prices?

Clemson University publishes prototype enterprise budgets for those and other crops here: Enterprise Budgets : Extension : Clemson University : South Carolina. You would need to modify the budgets for your particular situation. Also, because you can rent your land for $80/acre, that becomes the opportunity cost of using the land to produce your own crops.

You can find futures prices here: http://www.cmegroup.com/trading/agricultural/?utm_source=Google%2B1x1%2B&utm_medium=BANNER%2B&utm_content=Agricultural%2B1x1%2B&utm_campaign=CAMPAIGN&gclid=CILTi7DYybwCFW3NOgodKkMAMQ. You would need to adjust these prices for the basis in your area.

Economies of scale are present in farming, just as in other industries. See Economies of scale - Wikipedia, the free encyclopedia.

Regarding custom harvesting, I wouldn't bet the farm on getting your crops harvested at the "optimal" time. Chances are the farmers who are providing custom harvesting are going to get in their own crops before they get around to your 50 acres.

Have you thought about crop insurance? What happens if a drought wipes out your crop?

Steve