Ok lets look at a little Math! Rent $100.00 Acre!

[SASKFARMER3]

Ok some one explain what I am missing.
My first question is you must love farming to pay that kind of Rent in Western Canada.
Yes their is the New Insurance that tells you spend as you like we will cover you. I just wonder how financially strong they are if a 3 year drought hit. Hey California could be water short and have issues this summer, Why cant it happen here.
Ok So Rent is a 100 on a 1000 acres for simple math.
Rent 100 x 1000 = $100,000.00
Fert at .57 for N and Blend at 40. or total of $97,000.00
Now lets say the renter had no rules and you could seed wall to wall canola so you use Liberty 252 and chem price of $70.00 acre treated but then add Fungicide and burn off say 100.00
Ok now add that x 1000 acres or $100,000.00
Crop insurance is 7 plus other insurance is 11 or 17 x 1000 = $17,000.00
Now equip and men etc. 50 or $50000.00
Total for farm is $364,000.00 or at 10 you need 36 BPA.
Ah coming from some one who has seen a few sun sets in his time are you working for one of three people
1. Your Land lord,.
2. Keep your employees busy.
3. Chem and fert because why not.

Or just to be a BTO!

Now if you use wheat or something else its UGLY.

So some one explain what I am missing or is this the NEW MATH they teach in schools today!

Oh unless the land is Assessed at over 100,000.00 in new assessment I don't get it.

Ah farming where it never ceases to amaze me.

FUN WITH MATH SUNDAY!!!!!!!!!!!!

[SASKFARMER3]

Yes if it is the third quarter of a block of 4 and you own the other three and your rent is Taxes.
And .57 x 100lbs a acre ammonia.

[groundspeed]

You explained it SF3 bang on. Im lucky theres no 100ac around here but theres 50 and 60 still high enough. Said to landlord a couple years ago what do we do when grain prices drop off and he says well re negotiate then. he seemed to have forgotten that conversation. Once somebody gets a good rent price they never wanna take less. Thanks to the so called super farmers.

[SASKFARMER3]

Seems were at three super farmers who are exiting the game the last few years. They drove up land and rents with lots of smoke and mirrors.
Funny how land lords forget those conversations.
Ah one thing I always say when you own it outright its only you who stands by the fence and wonders what to grow. When you rent you never ever know who is standing waiting to take your place.
Our area is any where from $110, down to north of us at 45 to 55.

[bucket]

If guys have 100 bucks an acre for rent why not save that and spend a little more on their own?

[GOODRUM]

Saskfarmer. What insurance company are u referring too?
My scic canola coverage cost is a lot higher than $7/acre. Just curious if premiums vary that much,

[jake550]

Lots of land rents for far less than the coffee row says it's renting for too. Try $30/ac average in some areas of Saskatchewan. Some a little less. Some a little more.

[Hopperbin]

If a renter cannot pay 30 it should not be in crop production most likely and likely crop ins is keeping the renter going in my opinion.

[Hopperbin]

New machinery today if trading up within 5 years cost more per acre today than 30 years ago. I remember back then trading up a bourgault air seeder 10 years newer 36 feet for 20 grand. So 2 thousand per year cost to trade up. Old one nothing wrong with it. Shanks all perfect straight. Floating hitch. Farmed 14 quarters back then so had use. Rent at the time if renting cash was or share was maybe 5, 000 per open quarter Or about 32 per acre. Myself I put high value on open over doing circles some did not everyone to their own. 30 years later 100 should not neccessarily be out of line. Perspective.

[GOODRUM]

Hopper , what were the commodity prices then compared to now?

[blackpowder]

Saskfarmer isnt really missing anything. Except fixed costs. Vastly different numbers there as well as the difference in perception and calculation of said costs. Living off depreciation fits in somewhere too.
As weve seen before one generation has the solution for anothers mouldy money. Your kids will pay it someday sask3.

[Hopperbin]

Highly Variable. But not double. Today we are more efficient. High interest created high rent in my opinion back then. Lots of competition. No need for a realestate agent. Just saying machinery on a per acre basis is not getting cheaper if purchasing new even if your farming tripple the land base. Smart purchases and smart repairs have been a key money maker. 4 years ago the jd dealer told me to sell my 2 combines to a wrecker so I could spend 400 grand on his two year old shit. My combines we chopping and spreading 40 feet. What did tim allen used to say???