CREPs Program

[skent]

Background: small family farm, 35 acres is tillable, have been renting out 30 acres to a neighbor at $60 per year per acre for growing small grain. Access to the property is a 10' wide right of way or else use the neighbor's field road (for the large equipment). He has been renting the land from us since 1972. Last rent increase was 1995, when it went from $50 per acre to $60. I've approached my tennant about a rent increase (other land in my area is going for $80-$100 per acre, but he says (and I believe him) that times are hard and he can't afford any more than $60. He also said that if I end his lease, he would not allow me to use his field roads to get large equipment on or off the property, so I would be limited to the 10' right of way.

I've been approached by the county asking if I wanted to enroll in the CREPS program, (since my farmland qualifies). They would pay $118.50 per acre per year, plus pay to have the farm planted with a mixture of clover, alfafa (and others) as well as a signing bonus. Only stipulation is the property would need to be mowed at least once a year. I have the tractor and 8' mower on the property, so that wouldn't be a problem.

I feel bad about not growing grains on the property, but I don't make even half of the property taxes back in rent, and we are struggeling too. The farm is too small to make a go at haying, and I don't know enough about it to even try.

This just seems like an option to increase my income (be it a small increase) but I would be locked into a 10 program if I went with the county. (They also offer a 15 year option)


I value the opinions and views of the people here at TBN, and would appreciate any guidance or experience with the CREPS program.

Thanks

Steve

 

[MossRoad]

You have to do what you have to do and the other fellow should understand that is is only business. Plus, if he already made the comment that if you didn't allow him to farm it he would enforce the 10' right of way access, that, to me, says he is a bully.

 

[Baranx4]

I've been approached by the county asking if I wanted to enroll in the CREPS program, (since my farmland qualifies). They would pay $118.50 per acre per year, plus pay to have the farm planted with a mixture of clover, alfafa (and others) as well as a signing bonus. Only stipulation is the property would need to be mowed at least once a year. I have the tractor and 8' mower on the property, so that wouldn't be a problem.

I feel bad about not growing grains on the property, but I don't make even half of the property taxes back in rent, and we are struggeling too. The farm is too small to make a go at haying, and I don't know enough about it to even try.

This just seems like an option to increase my income (be it a small increase) but I would be locked into a 10 program if I went with the county. (They also offer a 15 year option)


I value the opinions and views of the people here at TBN, and would appreciate any guidance or experience with the CREPS program.

Thanks

Steve

As a member of Pheasants Forever, I have to say that the 118 per acre is a very good price. We have properties in here in Pa. that only get 65 per acre. Be sure that you have a riparian area as they designate, since they sometimes forget to, or they might not pay who you hire for the installation then your responsible.

As for your neighbor, tell him of your intentions and give him the option to match the price, or if you choose not to tell him that his threat of use of only of the right of way seemed like he was forcing his hand. If it was me, I'd jump on the CREP price. Be sure to document all your dealings with your neighbor, you'll have to spray the field before planting, but the cost of a sprayer is relatively low.

 

[jinman]

He also said that if I end his lease, he would not allow me to use his field roads to get large equipment on or off the property, so I would be limited to the 10' right of way.

Seems fair to me. . . You've been charging him rent and access is part of your payment. If he no longer pays rent, maybe you should offer him something for access through an annual lease. That way it is a specific written agreement for the period of your "access lease." At some later time he will be protected from an assumed right of way across his property because he has the specifics in writing and you paid him a fee. On the other hand, if you offer him payment and he won't accept, is that any different from his offering you payment and your not accepting it?

I think the deal with the county is a much better deal. I just don't think the farmer is a bad guy because he says your access is terminated.

 

[schmism]

Id tell your current tennant the new rent is $100/acre and if doesn't like it your going with the CREP program for $118/acre.

 

[dave1949]

A 10' right of way is ridiculous, but that is history at this point. Don't know current practice, but in the past, a bank wouldn't loan money to buy land that didn't have at least a 25' deeded ROW.

Like MossRoad and others said, you have to do what is best for you. It may be your neighbor thinks he has a lock on low rent acres due to the right of way issue.
Dave.

 

[forgeblast]

Thats not a bad price we are enrolled in the crep program, planting this spring trees and shrubs in 1.33 of our acrs as a buffer.
to me planting the clover ect and only mowing it once sounds easy. Plus it will be steady money for 10-15 years on the lease. And once the lease is up you would be able to rent out the land again or enroll it again. sounds like a win-win.
and you will have a wildlife food plot so if you hunt ,you know where they will be.

 

[riptides]

Ten years is over in a flash. You got any better deals that come with that guarantee like CREPS is offering? If not, sign up fast. Budget makers *all* over are looking at these farm/land/conservation programs and seeking to make cuts. Time are tough for the states. My :2cents:

 

[skent]

A 10' right of way is ridiculous, but that is history at this point. Don't know current practice, but in the past, a bank wouldn't loan money to buy land that didn't have at least a 25' deeded ROW.


The right of way is deeded (written as) 10 feet either side of the centerline of the existing (10' wide) driveway. So yes, the deeded right of way is 20' wide, but 1200 ft of the right of way is through a very thick wooded section, some VERY large trees border right up against the existing 10' wide driveway. Legally I could widen the driveway to 20', but not only would I need to remove 30 or so trees and stumps, I'd have to widen a culvert that allows for drainage under a low spot, provide some fill in for low areas, as well as p-----g off some other neighbors, I'm not sure if widening the right of way is economically fesable at this point.

Thank you all for your replies. The county said the paperwork would be ready mid summer, and the program could start after the 2010 crop year (after november 2010) so I've got sone time to think.