Ontario | nick121 - 9/8/2016 20:26
$400 per acre rent? How in the world do they pencil that? 185 bpa corn at $4.20 is $777 after rent only leaves $377 for seed, fert, chemicals, diesel and so on. $300 rent is just crazy to me. Right now the most I would pay in my area is about $100. I tried getting 90 acres outside my area but they had several offers well over $100 per acre. It was in pasture too, I figured its worth alot less for a year after it is put into crops because you never know what the land is like.
I guess $100-$150 is cheap and a no brainier for most guys in the good spots in Ontario.
i don't really have any idea what people are actually getting for rent here but most ads i've seen are asking $300-350 and you're right that really doesn't pencil out. some rough math i did last year came up with about $230 at the very most and that's doing the bare minimum in terms of fertiliser and weed control. the people i know that are actually paying rent don't go over $165-175 and max out at $200 if the ground is really good. i'm sure there's plenty paying more then that and even some paying that $300 and taking a loss just hoping they can get through and keep the land till prices go up again but to me it's not really a very good way to operate |
Competitive farmers?
