$32 vs $62 Rent!

[SASKFARMER3]

Why over pay, simply farmers are their own worst enemies. Hell I know I grow more than moose-jaw area year over year yet they pay huge rent in that area, No oil wells.

[lakenheath]

SF3 could you define the exact point where one overpays for land rent. Is overpaying 40 or is it 42, maybe 43 or do we have jump up to 47, no it must be 50?

You seem to know so much, why don't you set the market value of land and we will all just follow your lead. In fact we all the bid the exact same on a parcel of land and just accept whomever the landlord chooses to farm it.

You would be kind of like the CWB of land rentals. You tell us what we have to pay so we are all equals and nobody is overpaying. You would be the protector from our own stupidity and lack of knowledge.

Do you grow the exact same crops as the Moose Jaw area? Do you know what all land rental values are in the Moose Jaw area? Is demand for land in the Moose Jaw area the exact same as your area? Or are the farmers in the Moose Jaw area just stupid. No maybe they are greedy!

[lakenheath]

The problem is, SF3, is that you have a little bit of knowledge and you use it dangerously. You spew from your mouth comments that don't hold water. Generalizing about "overpaying" with little objective backing.

Let me illustrate a point for you. Maybe you can learn something.

Two farmers farming 8000 acres each and both of them are interested in renting a parcel of land. One has no debt and one pays $75,000 in interst to the bank each year. They both have the same equipment and men and both grow the same crops. Yet the one with debt has poor help and his repair bill each year on equipment is $50,000 higher then the no debt farmer. Aside from those 2 differences their farm operations or identical on paper.

Now let's say the "market value" (as set by SF3 and all his knowledge) is $35 per acre. Do you think that one farmer has the ability to "overpay" for that land and still make more money then the other guy?

Or do we just completely ignore the fact that the one farmer has a $15 per acre operating advantage over the other guy and call hime stupid, greedy and has the inability to operate a calculator because he is bidding $40 per acre and "OVERPAYING".

How dare he be so stupid!

[ianben]

Here in the UK our farm is part of a farm business survey which takes all our figures and compares them with 45 similar cereal farms in our area.

We get the results with just our farm identified and the others anonomous.
There is a cost given to family labour and a rent alocated to owned land.

I hoped to learn where I could improve or whether a different way of farming was more profitable.

Results just show how different 45 farms are and show any combination of systems and costs can work.

Figures are in £ and Ha but dont think that matters

Total output ranges from highest £2420 1st to lowest £534 32nd, £1448 45th, £1904 22nd, £1798 39th, £696 19th.

Labour costs highest £685 21st to lowest £2 32nd, £114 1st, 206 45th.

Machinery costs £904 39th to £110 11th, £404 1st, £420 45th.

Rent and occupiers repairs £476 43rd to £120 1st but £148 44th, £191 45th, and £294 6th

Interest payments £53 1st £57 2nd and £0 44th £7 45th. max £125 39th, the guy with all the machinery.

The last 12 farms show a loss yet six have no borrowings and only one shows above average for rent and repairs.

[SASKFARMER3]

Laken I am just saying why over pay when grain prices are dropping. Yet some do. Good for them I dont believe in over paying yet the farm expands every year. Wow simple be tight enjoy life. Over spending never ever wins.