Renting Out Farm ground
Printed From: Unofficial Allis
Category: Other Topics
Forum Name: Shops, Barns, Varmints, and Trucks
Forum Description: anything you want to talk about except politics
URL: https://www.allischalmers.com/forum/forum_posts.asp?TID=162893
Printed Date: 27 Apr 2024 at 6:06am
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Topic: Renting Out Farm ground
Posted By: FREEDGUY
Subject: Renting Out Farm ground
Date Posted: 17 Jul 2019 at 5:47pm
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To those that have "retired" and sold off equipment but rented-out your acreage, have you seen an increase in $/acre since the sell off or is it basically a "draw" income wise? Did you not have any heirs that weren't/not willing to put in any labor for planting/harvesting? Thanks
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Replies:
Posted By: 200Tom1
Date Posted: 17 Jul 2019 at 10:23pm
| I am in the process of selling everything now. Cash rent has declined in this area. But I sold the farm 2 years ago, will give up hay ground this fall. MOm gets 37000.00 dollars for her farm thru the gov program. I am over 1 hour away at 65 miles per hour. Won't be taking any farm equipment down. There is 186 acres of crop land on her farm. That means in 2 years when it comes out of the program we'd have to get $200.00/acre to stay the same. We have had 3 separate farmers ask about it. Just hoping prices don't decline much more. I will befollowing your post. |
Posted By: ac fleet
Date Posted: 18 Jul 2019 at 8:52am
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Rent here on our farm is less than half of what it started out at. Taxes have doubled also! ----can't blame the renter, he has to have a plus bottom line too so we don't have a choice since I am unable to farm anymore. ---Land price is way down so selling is out of the question. When we are gone, not sure where it will go since we don't have kids, still working on that problem. thanks; ac fleet ------------- http://machinebuildersnetwork.com/ |
Posted By: Tbone95
Date Posted: 18 Jul 2019 at 9:06am
| Surprised to hear land prices are down. |
Posted By: tomNE
Date Posted: 18 Jul 2019 at 11:43am
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2/3's and 1/3 and my operator pays all expenses and i pay for the covercrop seed. ------------- AC from the start of my families farming career till the end! |
Posted By: JohnCO
Date Posted: 18 Jul 2019 at 11:52pm
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So AC, "don't have kids, still working on that problem", um, maybe Shameless can tell you about making kids. Oh wait, never mind, he doesn't have any either! LOL ------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant |
Posted By: JohnCO
Date Posted: 18 Jul 2019 at 11:54pm
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I'm not surprised to hear rent prices are down, what with the price of corn and beans and the cost to grow them. Suspect we may see land values drop some more before it's all over. ------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant |
Posted By: Tbone95
Date Posted: 19 Jul 2019 at 8:14am
Rent price doesn’t surprise me being down as much as selling price does. And I made my comment more from an “about damn time” perspective. |
JohnCO wrote:Posted By: steve(ill)
Date Posted: 19 Jul 2019 at 8:34am
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Price of corn x 3 years ago and the price of ground went up to $7-10K per acre... Price of corn is back to original................ why should ground be so expensive ? How do you pay for $10K acre of ground ? ------------- Like them all, but love the "B"s. |
Posted By: ac fleet
Date Posted: 19 Jul 2019 at 10:03am
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I meant the problem of what/who to leave whatever is left to, ( if anything). Gave up on the kid thing many years ago!! Out of state investors here at one time were a problem and drove land prices up for a while. We almost had a buyer several years ago. Them and us had agreed on $14,500/A, and at the last min. they had money problems and deal went south. ---I never did think they would go ahead with the deal, BUT I was willing to go for it. At that time a farm 3 miles away from ours sold for $ 15,200, so we were not out of line. thanks; ac fleet ------------- http://machinebuildersnetwork.com/ |
Posted By: Tbone95
Date Posted: 19 Jul 2019 at 10:14am
Beats me. How do you? Been wondering that for years, and it seems ground never went down. Think you have to go back a little farther than 3 years to make your point.....but I get it, just sayin'.
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Posted By: Stan IL&TN
Date Posted: 19 Jul 2019 at 10:49am
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2/3 and 1/3 split. I pay for 1/3 fertilizer and 1/3 weed killer and he pays for everything else. ------------- 1957 WD45 dad's first AC 1968 one-seventy 1956 F40 Ferguson |
Posted By: FREEDGUY
Date Posted: 19 Jul 2019 at 9:08pm
You and several other posters (thanks to you AND them) have NOT answered my original ?? DID/DO you make more $$ renting out your acres to what I am going to assume a BTO will pay VRS farming the ground yourselves ??
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Posted By: plummerscarin
Date Posted: 20 Jul 2019 at 6:09am
| In my case I make more receiving rent than as an operator. There are 2 parcels. One is large that has received rent since my parents death. The other is smaller and patchy where BTOs have little interest so I play on it. Would likely be a wash if I did find a renter. |
Posted By: steve(ill)
Date Posted: 20 Jul 2019 at 9:00am
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Think you have to go back a little farther than 3 years to make your point.....but I get it, just sayin' ........ sorry Tbone... I ment the Price of Corn went up TIMES 3....... and yes that was MANY years ago.. That's when the price of ground jumped way up... at least it seem that was the timing to me. Twenty years ago corn was $2. Several years later it was up to $7-8. Gave a false sense of security to MANY and they bought HIGH.
------------- Like them all, but love the "B"s. |
Posted By: ac fleet
Date Posted: 20 Jul 2019 at 9:06am
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If your question was , which way do we make more from the farm-----Well that's a no-brainer!!!----Answer is---By renting it out to the greedy guys with the big green equipment! With the high inputs and low grain prices, there is no way ,in our case, any money could be made . ---expenses would eat it all! There is no way we could get enough money to put in the crops, even IF I was able to do it. ----With 1/2 cash before May1, then 1/2 cash after harvest, it gives them time to get the money and we have the money to pay the property taxes, which is a total of $ 10,000 here since they went up again. ------------- http://machinebuildersnetwork.com/ |
Posted By: Tbone95
Date Posted: 20 Jul 2019 at 10:22am
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Steve, I see exactly how you were saying it now. If, and that’s a big if, you can make a profit on sale of crop over inputs and taxes, AND IF, you already have the money to buy it in the bank, I can see it. You have a real asset of value that’s quite likely to appreciate in value and you pay the way with the crop. Might not be the highest return on that money, but then neither is leaving it in the bank. So I could see it. Trying to take out a loan on $14000 per acre and making the payment by farming it seems crazy!!! |
Posted By: Stan IL&TN
Date Posted: 20 Jul 2019 at 5:09pm
Sorry I have no answer for that. Dad was already retired before I got the farm so have no idea if his income went up or down at the point that he turned it over for someone else to farm. And I wasn't foolish enough to try it myself when I took over. 😬 ------------- 1957 WD45 dad's first AC 1968 one-seventy 1956 F40 Ferguson |
Posted By: JoeO(C-MO)
Date Posted: 21 Jul 2019 at 11:57am
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Seems that when stock market goes up-Land goes down. and when Stock market goes down-Land goes up. A lot of big money goes to investing in land to park their money and when stock market is on a upward trend they move from land ..just my observation and others as well!! ------------- D10 III, D15 II 3 pt, D15 II SC, 170 Gas w/shuttle, 175 Diesel UI ROPS, 185 w ROPS. AC 653 w/6 way blade, ROPS AC 615 Ind. WD45 running/Parts. |
Posted By: tomNE
Date Posted: 21 Jul 2019 at 12:47pm
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I always made more money farming it. no relatives who have any interest in farming. thought about having it custom farmed but believe renting is better then custom farming. i have a small piece that i still farm as my renters planter is too big for it. he still harvests it for me and the neighbor across the fence plants it. coop fertilizes it. when neighbor sprays his, he does mine at the same time. also allows me to declare earned income from uncle sam instead of unearned income. ------------- AC from the start of my families farming career till the end! |
Posted By: ACFarmer
Date Posted: 21 Jul 2019 at 12:55pm
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I don't think I could afford to rent out my ground. I couldn't get high enough rent to make the payments. Maybe one farm I own could as its pretty good dirt and I got it bought right. The rest of it, no way. Although I don't think I could stand to rent it out anyways. ------------- Making A living everyday farming with and working on Allis Equipment |
Posted By: DougG
Date Posted: 21 Jul 2019 at 2:20pm
| Nobody ever has answred directly,, simply math ,, rent it out these big time guys pay over average ,, ask the Shramecks in Williamburg Mo ,they gotta know |
Posted By: DMiller
Date Posted: 21 Jul 2019 at 3:12pm
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I started with a rented farm, barely paid taxes against an Old Handshake agreement that retaining was a component part of the purchase. They were paying but $20/acre for relatively poor pasturage. I explained the year of purchase would be the Final for that rate as I was fixing fences, adding access and eventually upgrading the place. Was laughed at but when the next year floated by sent them notice rent was Now $30/acre and a contract enclosed to sign or would have to vacate as handshake was with Previous owner and had informed rate would change. Paid the rate no question for two more years then decided to stop renting. Next renter awaiting in the aisle and offered $39/acre just to get it, would cover amendments and would even add lime(was considered our responsibility), they would do ALL the fence repairs I just had to align components(had on hand). Likely could have gotten $42 if waited them out or listed for rent. Farm tillable North of here(even North of Montgomery MO) when can locate any is renting REALLY high, $150-250/acre. |