land rent

[Hopperbin]

Hypothetically, say if you would expect average 35 bushel canola, 50 wheat HRSW. 50 peas as an average crop. What would you offer as cash rent? This is my land, just wondering what others would pay for this is near Humboldt Sask.

[Hopperbin]

4500 acres maybe that helps. Some neighbours claim 50, 65, and 60 for their averages so perhaps I am not intensive enough. 120 thousand bushel storage. Half is flat bottom. 3/4 with air. New grain dryer set up.
Land is all in C and D drainage and kept up. hmmmmm

[zeefarmer]

Honestly I don't know. You may be able to get alot higher than that if land prices are what I've heard. Rumor of land around Elrose selling for $2000/ac. If that's the case, you should be able to get $80-90/ac. Sure makes one think of letting someone else farm. Really makes it hard for a young guy like me.

[food4u]

Depends where in the Elrose area as there is natural gas in that area, esp. south of town.

[SASKFARMER3]

4500 acres $25.00 an acre Keep the bins and the rest.
HA HA HA.
Realistically with the drop in grain prices the crash in Europe the replacement of USA as #1 Soy grower, Bank of Canada to drop interest rates to .25% in coming year, it goes on and on.
In our area Id offer 50 as a start and probably settle at 62.
But with all the problems going on lately I'm starting to think once again Farmers will get the Shaft as the world implodes.

[malta]

I would put it in around the 50-60 range as I look at around 20% of gross. The tougher part is guessing the average price for the next 3 years. After the prices this year I don't doubt you could get $70 from somebody but do you want a land miner who will go broke in 3 years leaving you with your land in a mess?

[SASKFARMER3]

If I remember right in 1983 Elrose land sold for Historically high prices. Then the Crash happened and farmers Lost the land some Struggled to pay the high priced property off. Now Natural gas will help big time. History does repeat.
But here is what I am doing, If Choice quarter comes up we purchase Cash Deal. With most of our land owned and paid for or just about done 3 years or less, what the hell does one need more. Wait wait and wait. Then when downturn happens pounce.
Its simple.
Right now land is over priced all over America.
Rent look at your costs taking on a 62 dollar 1000 acres with little other debt doesn't matter. But if you are leveraged to the hill its like rolling the dice.
Have fun Hopper get a Iron clad contract with who ever pays you and enjoy sitting back.

[furrowtickler]

I agree with S/F here. But it is a hypothetical question. If you have 4500ac and could ask top dollar as in hoppers case, and you were at an age to sit back and bring in over $300,000 cash rant/year - take it and enjoy the ride for now. World Economy on a razors edge and these cash prices may be the highest one will see for a very long time.But history will repeat itself and a correction will happen - next year- 2-3-5 yrs? That is when we plan to do our next expansion if need be.

[fjlip]

Last year some acres that went unseeded, saw NO cash rent paid. Some saw 1/2 rent.
If the farmer goes broke you will not get your money and land could be a mess.
A lot of crop share in this area. Some rents ended up to $120/acre in 2008/2009.
Share the risk and the windfall?

[furrowtickler]

I am surprized more producers don't look at the cash/crop share split. We find it a much better risk management way than straight cash or crop share alone. Some straight crop share here was $150/ac or better. You simply can not afford to give that much away unless you are shareing exp as well.

[JDGreen]

furrowtickler is correct. Shared risk cash/crop share works dandy. We have succesfully done this with a couple of landlords. Happy us and happy them. They have done very well over the last 3 years. Do the math on the coconuts giving away a 1/3 share of 40 bushel green lentil crops at 18.00/bushel. $237/acre with no expenses. Rent er out I say.

[Burbert]

Super Comedian framers, BS is at a premium
right now. Land prices will drop like a
stone once the cwb ceases to exist, ifn
that happens. Then the corporate
marketeers will move in and scoop it all
up. Evil, butt the free market reins.
Law of the jungle, get big er git outta
the way!!!!!!!!!!! Butt we all know what
dogs do ta big wheels don't we??????

[malta]

Burbert, I am so thankful not to live in your world. I would get very depressed always seeing the glass half empty and assuming the sky would fall. Just for your information the glass is always full. Half water, half air. The elimination of the mono[poly is unlikely to effect land prices. With freedom, wheat prices will increase, farmers will make more on their existing land and won't have to expand to make a good living.

[Klause]

Are you looking to retire, HB?


I'd offer $50... $55... would maybe go to $60 with the
storage...

[dubsy]

Burpfart please enlighten me on how the cwb's desmise is going to affect land prices?? You might be right it might raise land prices but I have a feeling thats not what you had in mind..