land rent

[furrowtickler]

No corperate farms involved, just a local family farm.

[SASKFARMER3]

Are they good at math or just want more and more and more. Hey that's coming from me. Once we hit 10,000 acres that's it. But want ownership instead of renting.

[SASKFARMER3]

Well all entries on this blog relating to farm programs need to be thought over again.

With CFIP thestructure change was based on a benchmark per unit (or per acre) margin adjustment for any acres increased or decreased. This was unfair to an exceptional farm as in most circumstances, the farms actual margin was higher than the BPU but a lottery to the below average one.

In Agristability, the windfalls will be reduced or eliminated. A new ratio method is what will be used to adjust for increases or decreases in farm size.

In other words, if your historical margin is strong, your structural change will be fair to you. On the flip side. if you have never made money in this game, the program will not be there adequately either.

But for those that are struggling in this farming game, there might be other issues that need to be addressed.

[bucket]

If they have that kind of money for rent - why are they not buying land?

If I had that kind of money and I was so smart as to know what to do with it I would not be renting land. There are better places to spend the equivalent of 9600 a quarter for the privilege of tractoring across a piece of land.

I might take up tiger woods approach. Either way you are getting screwed.

[furrowtickler]

Land in that area is hard to come buy for puchase. Oil wells dot the landscape. So the only way to farm more for most farmers is to rent it.
Also being a land rent auction, like most Kramer sales, premiums seem to be paid, they seem to be very good at extracting the most money possible from the buyer - or in this case the renter.
What is most concerning to the rest of us is the fallout from this auction. Land in our area is assessed much higher than the said property(2x). Dollar signs are going to buble up with every land owner - "my land is worth more than that guy's" So where is this going to lead - $70-80/ac? Hopefully it does not get to that point, like I said before not a good time to expand - take stock of what you already farm and maximise what you do already and wait for the fallout to subside.
Farmers tend to have very short memories, 2001,2002 drought reduced crops to nothing.

[cottonpicken]

What was ballpark assesment?

[tipsy]

If people are renting land to increase there farm size,and they have figure out a way that a farm program will guarantee them revenue,then good for them,I wish them well. Our farm thought we had that insurance program when we signed up with cais. Boy did we get fooled. In 2002-3-4-5 were the worst years this 90 year farm will ever see. We signed up and paid for 100% coverage and in the end when revenue was drasticly reduced,even though our farm sized had no to very little change we had at best,maybe 20% coverage when we presumed were covered for far more .BTW our farm is still trying to recovered from the so called support program! Then thur media we find out the administrative manner of this program is more questionable! NO KIDDING!!!
Mr.Bacardi and I will be spending and bring in the new year together. SO FOMR HIM AND I HAPPY NEW YEAR AND ALL THE BEST FOR 2010! CHEERS

[SASKFARMER3]

OK if this is a huge oil area do these guys that over paid have any wells on their farm or surface leases. I also agree with fact why wouldn't they just move a little out of area and rent all they could for probably 40 or if they have that much money just buy at any price. Also how come the guys I know who have money watch what they spend to the penny. Money boys its money and over paying is just stupid.

[Burbert]

Best thing about rentin, is that you kin abuse the land, however you want. Pour the chemicals and fert to it, work it wet, grow the crop, sell the straw and run all over the land when its wet. When crop is poor, whine and snivel to landowner and he'll let you off the rent hook too! Put some chem on the land in the Fall too, so's ya gotta a claim on it fer next year, in case landowner wants a new renter. Yup rentins the best, when owner gets old he doesn't want much anyways cause it'll cut down on his pension from government!!! Make promises that you can't or never intend to keep to, cause he'll croak soon and you kin deal wit city cousins fer a year or two too, before you lose this dirt, then move to the next old guy! Pretty cute system isn't it, happens over and over agin in our neck of the woods. Yup rentin is good!

[parsley]

Learn to negotiate rental fees from <p></p>
<p class="EC_style8ptBK"><strong>[URL="http://parsleysnotebook.blogspot.com/2010/01/canadian-fighter-sam-stout-excites-ufc.html"](Sam Stout)[/URL]</strong></p>