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EC SoDak | Perhaps, but a lot of smaller operations seem to expect much cheaper rents, while running much cheaper equipment, and have put zero effort into learning marketing, proper chemical application, storage, etc, because livestock (it seems). the opportunity tends to come from your name being recognized for folks that will pay well and do a good job. To your point, some are just paying a lot and the LL owns a ton of ground and they don’t care.
Contrary to popular belief, you can have size and do a good job. However, lots of factors go into that. 30k operators over 4+ counties likely do a poorer job vs an operation that covers 1 or 2 counties and is 10-15k acres.
Here is a scenario. Farm 100% rented ground (let’s say 1000 acres or less) at market value, pay Iowa average to above average rates to have your ground farmed, and if you suggest you’ll buy some equipment 20-30 years old so you can make some ROI, you’re laughed at by the older relatives worth 10-20-30 million and close to retirement. Have you tried paying equipment prices for new big stuff when your acres don’t justify it, but you have to do it?
You’re right, the nut sack you come from does make a difference, just not the way you intended. But it does make you learn business and how to sharpen a pencil. | |
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How many acres won't get planted
