Thoughts!!

[FarmerSmuck]

Had a good conversation with my father. I would like to share. I'am a established farmer 75% owned land 25% rented. I have a some seasonal help, its family so it's a good deal for me. I was approached by a neighbour the other day and he wanted to inform me that when I'am done farming he would gladly take over my land base. I have a major issue with this, this neighbour only got half done harvest last year. And always has crop out on a ordinary year. I'am confused as to why these people think they need more land. Is this the ordinary in every area?

[bucket]

If he's paying an outrageous premium and the cheque is good....wtf.


If it's about an industry full of good farmers then it's a different story....

I would be torn either way....but once it's gone it's gone.


You may not know who's in the background either....

[Partners]

Same stuff here..Guys combining this spring rented more land.
All others were done..never enough for some.their crops are not even headed yet..or just started blooming..

[farmaholic]

Guys around here are finding out that taking that extra $5/ac from the overloaded high paying tenant can bite them in the ass. Some of these guys leave a mess when their term is up and new tenants aren't willing to pay top dollar or the decent going rate because the land needs too much work and be cleaned up.

My advice would be to think long term with a decent tenant unless you enjoy the revolving door of tenants after every term expires.

If it bothers you at all to see your land poorly farmed....steer clear. Even money can't buy peace of mind in some cases.

[FarmerSmuck]

How can these farms stay profitable that have crop out every winter. And they want more more more land!!!! I think in my area it is catching up with guys now. I just sit back and shake my head!!!

[FarmerSmuck]

Lots of my good friends farm and they are financed for a big crop every year. Not sure how they do it. I guess once FCC owns you, you just go deeper and deeper in debt.

[farmaholic]

Farmersmuck. ...if we consider the trend, I'm getting left behind! By choice. I've turned down opportunity to rent. I haven't actively looked to rent. But that shouldn't be my job anymore.

I had land sell beside me that I never had a chance at but not saying I wouldn't purchase some if it was what I was looking for.

Some around here simply can't get enough either....edging out the young fellows looking to start up.

Competition between guys....I find it depends on which circle of friends you're in! High testosterone levels in some of them boys.

And some will: "Sacrifice their financial well being, along with their mental and physical health, for their insatiable ego".

[Horse]

Guys around here are finding out that taking that extra $5/ac from the overloaded high paying tenant can bite them in the ass. Some of these guys leave a mess when their term is up and new tenants aren't willing to pay top dollar or the decent going rate because the land needs too much work and be cleaned up.

My advice would be to think long term with a decent tenant unless you enjoy the revolving door of tenants after every term expires.

If it bothers you at all to see your land poorly farmed....steer clear. Even money can't buy peace of mind in some cases.

If $5 makes a difference you are surely in too deep, as for cleaning up a mess please explained spraying 1 weed or 100 is no difference, when all those good farmers miss a strip it has as many weeds as the guy on organic, so do you have a point or just an excuse

[Quadtrack]

If $5 makes a difference you are surely in too deep, as for cleaning up a mess please explained spraying 1 weed or 100 is no difference, when all those good farmers miss a strip it has as many weeds as the guy on organic, so do you have a point or just an excuse

Of course it matters. A high weed population always takes some yield before it gets controlled. And if control is delayed for some reason like rain or wind the 'dirty' fields go downhill faster than clean ones in a year like this when wet at spring and dwindling moisture since. It takes several years to 'clean up' a mess depending on what it is. Been there done that. Plus getting some fertility back in it.

Our local perennial late rent lots farmer has dragged scentless chamomile down to this area from his rented further north. So yes there is a long term implication to renting to this guy who is near the end of the credit party I'm sure.

Farmaholic is rent-if seeing your land farmed in mediocre fashion bothers you at all, rent to a stable operator that takes care of it for the long term. It will increase land value and be the right move in the long run.

[helmsdale]

Farmaholic is rent-if seeing your land farmed in mediocre fashion bothers you at all, rent to a stable operator that takes care of it for the long term. It will increase land value and be the right move in the long run.

Under what we used to think were widely accepted principles like rational actors being on both sides of the transaction both seeking long term profit maximization, one could safely assume certain things. This being that
1) poorly maintained land should be less than properly maintained land.
2) the larger the portion of the land not being in production, the less it should be in relation to a quarter that is broken and farmable from corner to corner.
3) the more work that's involved to bring any unfarmable land into production the less it should sell for.

That being said, im sure we can all come up with numerous examples where a BTO or outside investor has paid top dollar or even set a new record for considerably less than premium land. Nearly every piece of land requires as much or more than the piece that sold before it. Every sale is a new all time high. Doesn't matter if it's all rocks, hills, sloughs, or grass.

Until there is sanity reinjected into this market, insanity will continue to reign.

[bgmb]

There is definitely an big dick competition going on in some cases like my dad has 14 combines oh but mine has 16 didn't you see the numbers on the side. Haha

No doubt there are lots of well managed large farms making a shit load of money as well.

[RedLentil]

What are the criteria for being considered a BTO?
Just wondering where the line is between a good farmer and a BTO.

[Richard5]

Had a good conversation with my father. I would like to share. I'am a established farmer 75% owned land 25% rented. I have a some seasonal help, its family so it's a good deal for me. I was approached by a neighbour the other day and he wanted to inform me that when I'am done farming he would gladly take over my land base. I have a major issue with this, this neighbour only got half done harvest last year. And always has crop out on a ordinary year. I'am confused as to why these people think they need more land. Is this the ordinary in every area?

What area is this? My advice is when you are ready, find the right farm you feel comfortable with. There should be no end to the list of candidates that will be interested but only some will treat the land like the same as you.

My accountant always describes to me how a small percentage are very weathly and good financial performance every year, the group in the middle are profitable but always room for improvement. The remainder are one poor crop from insolvency. I guess its these guys that fall for input capital schemes or keep think more land will solve there problems.

If they can't farm properly what they currently have, it for sure won't work for more. Live within your means guys, bigger is not better!

[farmaholic]

What are the criteria for being considered a BTO?
Just wondering where the line is between a good farmer and a BTO.

I hope you're kidding and being sarcastic.

There is no line.

Any size Producer can be either a good or poor farmer.... size doesn't matter, at least that's what she says. It's the job you do with what you have.