farm ground rent or income levels in your area

[bucktaker]

I know it all depends on the type of ground, location and crops but what does farm land rent for in your area?

1) rent per acre?
2) shares 1/3 1/2 etc gross per acre.


interest rates and prices have me wondering if I can purchase a 100-200 acres farm land with a good bit tillable and make a go of it renting or share cropping. i would not be doing it myself just being the owner and using it as recreation sland as well. Do some food plots on the non tillabel acres. will I pay my taxes and some of my annual payment?

 

[Brushhill dave]

In my neck of the land share cropping has some requirements like having storage for whatever crop is taken off. Rent can run as high as $80-$85 per acre for no.1 soil type. Location to town( elevators) etc will have an effect on the price ceiling.

 

[D7E]

20-40 $ per acre for grain land . Very little share cropping done anymore straight cash deal . Was selling for $1100 per acre last year but dropped back a bit now .

 

[raasd]

It all depends on what you buy it for. Around me its all over the place. Good tillable land sells for $6,000 to $9,000. The last auction I went to the sold 120 acres with 100 tillable for $7,100/acre. The problem was that all of the lenders there would only loan out $3,800/acre, so you essentially needed half down up front. Rental rates vary greatly from $100 to $400 per acre cash rent. You have to be careful with renters. The guys that pay the most often times abuse the ground, don't put enough fertilizer out, and are gone in a few years when the ground is tapped out. It can take you a decade to build it back up to where it should be. I would say the average around us is $150 to $200 per acre. We have 180 tillable acres that we cash rent out at $150/acre, but the guy takes care of it like his own, paid for some tiling work out of his own pocket and will most likely farm it as long as he wants. He often brings up an increase in rent before we even think about asking for it. Finding a fair renter makes everthing easier.

If you have cash to buy land it can be a good investment, but in my area land prices have gone up so much that it doesn't pencil out at a good return. If you 75 miles SE of me into IA it gets even worse. The just sold some ground at $20,050/acre!

 

[smstonypoint]

The USDA collects data on cash rents by county -- NASS - Surveys - Guide to NASS Surveys and Programs - Cash Rents by County

Steve

 

[300UGUY]

We don't have the values that Iowa has, but the rents are much lower. It still wouldn't be a good investment, especially after property taxes were factored in.

 

[roygage]

I
If you have cash to buy land it can be a good investment, but in my area land prices have gone up so much that it doesn't pencil out at a good return. If you 75 miles SE of me into IA it gets even worse. The just sold some ground at $20,050/acre!

Live 100 miles east of Sioux Falls but my home town is in Lyon county Iowa just north of Sioux County. Heard about that 20500 along with some other pretty pricey ones.

Interesting times.

 

[KansasFarmer]

USDA on RFDTV said that cash rents in upper Midwest have hit $500/acre. In Kansas, cash rents are $200-$250/acre.

As to land prices, credit markets won't support the prices for newly minted farmers but the families who own their current farm can borrow from the bank for the majority of the purchase. Same TV program that most additions to these big farms are cash purchases.

 

[raasd]

USDA on RFDTV said that cash rents in upper Midwest have hit $500/acre. In Kansas, cash rents are $200-$250/acre.

As to land prices, credit markets won't support the prices for newly minted farmers but the families who own their current farm can borrow from the bank for the majority of the purchase. Same TV program that most additions to these big farms are cash purchases.

There are a number of cash buyers out there. The only way I know that current farmers are getting to borrow the majority is to pledge another piece of ground, which is just like putting 50% down. The assett is just land instead of cash. I wouldn't feel too good about putting up a paid for piece of ground for some of this high priced stuff.

A couple of farmers did the math on the return on that $20,000/acre ground based on todays input costs and avg. yield and commodity prices and got a break even point of over 70 years. Not what I would call a solid investment but if you have the cash i can see it working out.

 

[300UGUY]

There are a number of cash buyers out there. The only way I know that current farmers are getting to borrow the majority is to pledge another piece of ground, which is just like putting 50% down. The assett is just land instead of cash. I wouldn't feel too good about putting up a paid for piece of ground for some of this high priced stuff.

A couple of farmers did the math on the return on that $20,000/acre ground based on todays input costs and avg. yield and commodity prices and got a break even point of over 70 years. Not what I would call a solid investment but if you have the cash i can see it working out.

For some farmers that I know, buying land is a multi generational investment. They are willing to accept very long payoff periods. You have 70 yr olds buying land that will benefit their grandchildren.

Even more so if it adjoins property they already own.