Central Iowa | davpal - 8/29/2018 00:11
I think he's referring to the part where you pay the landlord $250 in rent and it ends up costing 36 bushels of your bean yields to pay rent. That leaves you with 19 bushels of beans for all the work you do and the inputs you put into it. How does that work? $7x19=$133. You can come out ahead on that? I feel bad for you because it's too much work for the reward or loss. I would tell every landlord $150 an acre or see ya later and that would be a stretch. If you lose the ground they will be doing you a favor. You can drive by and see someone else losing their butt.
I totally agree which is why I posted this thread, these guys saying you should be able to make $100+ dollars an acre on beans must be pumping thier own septic tanks for fertilizer or selling to a different market or replanting their own beans because my financial advisor and I sat down with sharpened pencils and we ran through multiple theories and not able to come close to what was posted...
around here, most farmers are not interested in fields smaller than 40 acres or fields that are not square or rectangle because of the size of equipment and point rows and many other factors, this should be a factor in rent rates as well, an 80 acre field that is tiled, black soil no trees is going to be worth more per acre rent wise than a field that is bordered with trees and not tiled white oak soil, I'm sorry, I farm both and there is a big yield difference especially in a weather active year. Many farmers are also subsidizing the land they own to offset high priced rent, they are getting tired of that also. Something needs to change in the ag sector, this can't go on for much longer before we end up in a recession. In response to this tariff relief payment (also know as a joke) the government started out with claiming to pay farmers a half of a cent per bushel of corn and 82.5 cents per bushel on beans then they decided that was not enough so they changed it to $1.65 per bushel beans and a whole penny for corn but the whole kicker is they are only going to pay for %50 of you bushels... In other words right back where we started...
This is not fair to those who have had lots of ponds or drought or other weather related factors that will decrease yield, on the flip side the the producers that have high yields the payment will be more like a bonus.
I also understand that many farmers do not want to give up land yet because of the unlikely event of ever getting it back and hoping things will be better next year. (like last year and the year before ect.)
In response to the idea of renegotiating prices with fuel, fertilizer ect.. Spoken like a true landlord, heck if you think renegotiating prices with them is a possibility why stop there? Try going to the elevator when it's time to sell and negotiate a price with them and let me know how that works out for you.
I don't understand, the title of the thread was a question as well as the closing statement if the original thread, I have to chuckle that the majority of the responses are a reaction to the one landlord that was willing to work with me as opposed to the pointed questions I asked or the other 7 landlords who refused to discuss it. |
Are landlords willing to renegotiate prices?
