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The Whoa is me is getting a little old
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coup
Posted 1/25/2026 08:23 (#11524613 - in reply to #11524329)
Subject: RE: The Whoa is me is getting a little old


USA
Kooiker - 1/24/2026 21:42

coup - 1/24/2026 07:59  You were talking about rents being lowered. Rent cost isn't the main problem . Cost of fertilizer , seed, and machinery is. There is @ least $150 acre excess cost per acre caused by over priced fert, seed, and machine cost per acre.




For guys that are paying "going rate" on rents, yes rent is the biggest problem.     You can point fingers at every other expense that needs trimming, rent by itself makes up ~40% of the cost of putting an acre in the ground.   That's where the bullseye needs to be for operations that are bleeding red ink.

Then you try to say that a landowner is owed 4% ROI on land value/price, no they are not.    They can over pay/over value their land all they want, over the long term they're only going to get what can can be farmed out of the ground and the govt.      They are not subsidizing the farmer because they over payed for land, they subsidized whoever they bought the land from at too high of price.  

And I 100% do not think it is the taxpayers job to subsidize landowners poor decision to over pay for land.     Which is exactly what is currently going on with farm subsidies and subsidizes crop insurance.



I get it, you own lots of land and don't want to see the value or ROI decline.   Neither do the companies selling the inputs you want to cut, so the only answer is to keep gouging the taxpayer and keep increasing the federal deficit because no one wants to give up what they think they deserve.



You wrong about what is causing the red ink in a lot of operations, it is not rent @ 40%.

Land rent cost @ 40% is not out of line . 2/3 - 1/3 share rent was happening long before now where the tenant paid 100% of cost. So if you lower the rent cost on $400-$500 acre cash rent by 7% , would lower COP by $28- $35 acre. Rents are not where the problem is, it is over inflated seed, fert and machine cost.

History has shown the majority of the time land rent ROI = money cost plus rent. Back in the 80s when ground price peaked land would not gross interest cost You won't get any argument from that current land prices are out of touch with reality like, it got to in the 1980s before the land price correction.

As far as me personally would be fine if land prices dropped in half. Has nothing to do with wanting to buy ground @ 50% of current values, has everything to do with estate taxes.

Edited by coup 1/25/2026 08:25
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