Land rent

[cowman]

On the commodity board they had a post about land rents. It seems east of Calgary the going rate is in that $65/acre range? Apparently feedlots have no problem paying that kind of money to grow silage for a short haul?
The economics of growing grain or oilseeds on $65 land are pretty shaky to say the least, but maybe not a problem for silage? At $25/t and 11 or 12 tons/acre it pencils out?
Decent hayland in my area is anywhere from $60 to $80/acre and seems to find a willing renter whenever offered. I doubt anybody made much money this year on hay at that price? Well maybe if you got it up dry, in small bales, and you had an established set of horse owners, buying?
Personally I have a hard time understanding how anyone can afford to grow grain at todays prices on rented land? They must be into voodoo economics or something?

[WoolyBear]

How much of it is caused by a landlord going back and forth between suitors each time getting the "boys" to ante up so the other guy doesn't get it?

Where I use to live, that was the case, just ended up being a pissing match to see who can farm the most land.

You're right on the math cowman. They aren't figuring on must more than $5/bushel on canola and the PRO's on cereals are going down everytime they make a report. The feedlot owners likely are the only ones that can make a crop pay with rent that high.

[WoolyBear]

In this area it seems that a few larger operations are hell bent on picking up every square inch of land that is available. One outfit moved from the Olds area and has bought up quite a bit of land, plus is renting a lot as well. They have a feedlot permit for 2000 head and are calving 1200 cows in two locations.