What should I plant?

[City Farmer]

Hi all. I've been looking for some property for a while now. I settled on 24 acres, 17 open with beans planted now and 7 acres of woods.

In the spring, I'd like to plant something myself to keep my agricultural tax designation. The farmer that's currently planting the 17 acres only pays $400, he said that's the going rate for 17 acres. For $400 it's more of a hassle to have him in there. I'd like to cut the driveway, put the pond, mini orchard, clear/move some over grown hedge rows, plant some trees and prep the area for a barn. I probably won't start building a house for a couple of years at the earliest.

I have 3 old tractors, a Ford 3000, 4400 TLB, Case 831C and a Case 350B dozer. My Implements are, 2 bottom plow, 60" KK tiller and a 12' wheel disc. I'll buy/trade for a planter or whatever else I need to harvest. I was thinking hay but if someone else has a better idea, I'm open to anything.

 

[jbooth]

I would check with other farmers. Seems to me $400 for 17 acres is dirt cheap. Here in Kansas $50 + an acre is more like it and I was astounded that other regions of the country were receiving 3-4x that for cash rent.

 

[Loadstar]

That is cheap rent. Are they putting back into the ground and maintaining such as cutting trees back or tile?

 

[City Farmer]

He's not doing any improvements, the run off ditches have trees growing in them and the main trail is all rutted up. Instead of putting in a culvert, he just pushed dirt into the run off ditch to get between the fields. I don't know if he's putting anything back into the ground but I doubt it. It's time for him to go, I think I'll try hay. I can tell the county its planted even if I don't harvest it.

 

[smstonypoint]

In what county is your property located?

You can look up average county rental rates here: USDA/NASS QuickStats Ad-hoc Query Tool. Keep in mind that rental rates vary within county depending on soil productivity, proximity to potential renters' operations, etc. These rates also vary over time with crop prices.

Depending on MI's land-use assessment requirements, you may have to provide copies of a Schedule F or E, or Form 4835 to document farm income. Most counties don't take your word for it when it comes to qualifying for ag, use assessment.

Steve

 

[Deerherd]

Find out what impact in actual dollars the agricultural designation saves you. Remember, taking the deduction on land you own and farm requires claiming profits and loses on your income taxes. Renting it out absolves you from these requirements.

Until you build a house or barn, I can't imagine the tax savings would amount to very much and certainly wouldn't offset the hassle of a potential tax audit.

When does your current agricultural exemption and contract expire? Many states require a signed rental contract or affidavit from you regarding how many acres are under the exemption and may be valid for several years.

Enjoy your new property and good luck!

 

[smstonypoint]

Find out what impact in actual dollars the agricultural designation saves you. Remember, taking the deduction on land you own and farm requires claiming profits and loses on your income taxes. Renting it out absolves you from these requirements.

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You have to declare rental income when filing your federal income taxes.

Steve

 

[paulharvey]

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You have to declare rental income when filing your federal income taxes.

Steve

In Florida you don't have to show income to be declared a "bona-fide farm". I would say 17 acres of planted pines.

 

[smstonypoint]

In Florida you don't have to show income to be declared a "bona-fide farm". I would say 17 acres of planted pines.

In NC, you can qualify for forestry-use assessment if you are following a forestry management plan prepared by a forester. The plan has to cover a minimum of 20 contiguous acres.

Steve

 

[dave1949]

He's not doing any improvements, the run off ditches have trees growing in them and the main trail is all rutted up. Instead of putting in a culvert, he just pushed dirt into the run off ditch to get between the fields. I don't know if he's putting anything back into the ground but I doubt it. It's time for him to go, I think I'll try hay. I can tell the county its planted even if I don't harvest it.

It sounds like anything, from doing nothing to whatever, would be an improvement. I agree he has to go.