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Would you trade high productive ground for more low productivity?
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Iowa-beef
Posted 3/25/2024 20:45 (#10680367)
Subject: Would you trade high productive ground for more low productivity?


Have a very nice quarter 12 miles from home. First farm I bought on my own, not that that info matters.

Farmer Joe that pretty much surrounds the quarter I'm talking about has a half section that butts up to a big chunk of ground me and other family members own. About 3 miles from my feedlot.

The half section isn't quite half the csr2 points as my quarter.

86csr vrs 47

My quarter sits inside a 2 mile stretch of road so road doesn't eat up much of it. 154 tillable has a water way but farm it pretty much back and forth

Half section has road on 3 sides a crick and a few terraces. 298 tillable have to contour the farm as it's on a bit of a good slope and like mentioned terraces and a crick to farm around

Farmer Joe wants to swap farms and said figure out best way to do. He has hog barns close to my quarter and his half section isn't far from my feedlot so we both would actually better utilize the others farms.

Only thing I can figure up is total csr on tillable acres times a value?
Farm sales locally have been running $180-220 per csr2 point.

So my farm 154 tillable x 86csr x $200 = $2.648 mil
Farmer Joe 298 tillable x 47csr x $200 = $2.801

I pay the difference in the prices and we swap abstracts?

I still haven't decided if this is the right move for me. I'm not actively looking for more ground to farm but picking up an extra 144 acres isn't a bad thing.

The lower csr has me kind of wondering if it's the right move but yield and csr values don't seem to correlate point for point here. A 45 csr isn't half as productive as a 90 in normal years. Drought years they probably are close on being half as productive.

Maybe he thinks he'll get a bigger check than the math I proposed above but I don't see any other fair way to figure this up... also he came to me. Shoot some holes in this plan
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