$32 vs $62 Rent!

[broker]

when I started buying grain in the early 90's in southern MB, "Big" farmers that I had hauling to me were in the 2000ac range! Now, the 2000ac farmer is pretty much a hobby farmer in most areas! Wow what a difference!

[cottonpicken]

You guys are thinking like american hob
nobbs/gary pikes.

My dick is bigger cause i farm more land and i'm a
big shot-which equals me more sucsessfull than
everyone else-and guess what everyone look at
me,cause i'm just like brad pittt,except my dick is
small my family hates he and my wife is having an
affair cause i dont spend enough time with her or
the kids because im trying to be a big shot
farmer.HAHA im going to disney,hawii,lake cause
i'm a big shot.

BALANCE-is hard

[SASKFARMER3]

cotton you of all people should be able to relate. Its all about the money, Over paying for land is just plain stupid. That's all I am saying OVER paying for anything is stupid.

[SASKFARMER3]

Well said CP!!!!!

[mbratrud]

First of all land rent, I agree it has got out hand, but if I were a landlord I would expect at least 5% return on the value of my land.

As for Farm size and Mr. Pikes comments about 6000 acres to be a viable farm the man is full of shit. First of all it is not a cookie cutter solution for all farms. It depends on how diversified you cropping can be in your area. Quality of dirt. Sure there are areas where you need to be 6000 acres to be viable. If you are budgeting for a 50 bu Barley Crop, a 20 bu Canola crop or a 30 bu wheat crop at takes more acres to cover you’re fixed costs. If you have good dirt and practice more intense farm management, you can do more with less.

We Farm 3500 acres of good dirt, we run newer equipment, we usually grow 6 - 8 different crops and we focus on high production, quality and marketing. Our accountant says we are one of the most profitable farms in his portfolio.

My Point is 3000, 6000, 10000, 15000 acres they all have there advantages and disadvantages. For someone to say you need to be 6000 or bigger I disagree, and as they say Mr. Pike the bigger they are the harder they fall. 125 acres per foot of drill? Yes that is very doable but you are setting yourself up for some late seeded crops, or your forcing yourself to start so early you may have to reseed a bunch of acres. Quantify how much more per acre you can make if you get your crop in the ground between May 5th and May 15th?

I think as Farms in Western Canada shift to 3 year rotations 1/3 Cereal 1/3 Pulse 1/3 Oilseed it will be increasingly difficult for the large farms to manage to the same level of profitability as some smaller operations. Sure its great to be $15 - $20 per acre more efficient with your fixed costs but many times guys are leaving significantly more than that on the profit side. Spray that Fungicide a couple days late or Insecticide. Loose a grade here and there because the crop sat out to long. Loose yield on your crop because it shelled out because it wasn't dealt with soon enough.

I truly respect the guys that work their ass off and suffer the stress and risk of large acres, and many are doing a great job. But to make a statement like the only viable farm is 6000 plus, I think is incorrect. Can you get more profitable than a farmer who has 1000 acres of owned land no debt and runs not new but well maintained equipment, pays in advance for all his/her inputs and has time to take his kid to the rink and fishing in the summer, then take his wife on a nice holiday in the Winter?

So in Summary, with all do respect Mr. Pike I disagree.

[furrowtickler]

Well said mbratrud.

[hobbyfrmr]

It really is personal preference. In my area we have really big, efficient farmers. Everybody else is disgusted with the ag industry,majority age is 50 yrs old. The "big farms" offers the guy rent on his (mostly paid for)land and offers him a job. Thats all these 50 guys want, take away the big $ decisions, collect good money on rent and they get to do what they are best at, operating machines,the best and newest on the market. That is a SWEET DEAL. There is a place for the big farms. The other plus, old(er) guys are great, consistent, reliable workers, that can fix stuff untill the dealership arrives. Its a win/win situation. The landlords have never had such opportunities and the money is moslty flowing in their direction for once!! They are finally seeing a reward for OWNERSHIP of their land.
Efficiency is a moving target. The AG industry will always work at making a producer feel inferior buy manipulating only a handful of flashy words like "efficiency","productivity" "critical mass", and "down time". Then, the producers run home and figure how grow more for less money. Look at any/all advertising in the farm mags. Count how many times you see those words in advertising ...-seed, chem, fert, machines. Its fascinating.."Our stuff is packaged in tanker trucks for faster fills and less downtime to maximize efficiency so you know your working your sprayer at critical mass!! he he, I'm just saying!!!

[fjlip]

cp and mbratrud, you have both hit the nails on the head. 2000 acres,no debt with no employees is my goal. That gives a good low stress lifestyle.What is the point in risking more going into debt? Just greed. Life is short. There's a lot more to enjoy than paying for land and living poor. Assess your goals and ambitions keeping in mind your sanity. A quote I have seen," True happiness comes not from achieving more but being satisfied with less". The "more" is never enough and turns to addiction. We see it in the BTO's in the area now.

[burnt]

mbratrud - I concur with most of your points except for one. I have little respect for anyone whose greed makes survival difficult for those around him.

Here in Ontario, we are seeing 5 yr. deals locked up at $200 - $250/ac. for 180 bu. corn, 45 bu. soys. Fert/chem bill pushing $175-$200/ac., machinery costs - you know what they are, trucking, drying bills . . .

We will see $3.25 corn again and $8 beans will look good before we hit bottom this time. We don't always see 180 bu. corn or 45, 50 bu. beans either. Mix in a poorer crop year and these higher costs and watch the parade to Queens Park and Parliament Hill begin.

And really, who is to blame? Geez it's hard to find tears.

[SASKFARMER3]

But guys the thread is about over paying for frickin land. On our farm their is three guys who have good machinery and enjoy what they do. Yes I bitch about things but man its way better than 20 plus years with AG Canada and Idiots from East Canada. But my point is if I can find land that is reasonable and put an extra 32 dollars in my pocket on couple thousand acres The more for me to have and spend. Its business and that's it.