West of Mpls MN about 50 miles on Hwy 12 | Boy, that comment sure generated a few more comments.
I don't know if it's a smart move financially or not, we'll know in three years.
Lot's of comments on opportunity cost. I have always farmed rented ground, as well as my owned ground. Whatever I'm paying for rent, that is the land cost applied to my owned land as well. I will still be renting and farming 134 acres of some pretty marginal ground on the "West side of the crick". I will be growing NGMO soybeans. I have 5,000 bushels cash contracted for a few pennies over $10.00/bushel...I sure hope it keeps raining.
We will not have your average "rent it to the highest bidder" cash rent contract. The actual rent from the land will be about $20.00 to $30.00/ acre less than high rents paid here. A portion of the rent will be paid in bushels. I will be still be a farmer in the eyes of the IRS, and the FSA office.
My dryer and bins will earn extra $$/acre for me, and hopefully for my new business partner as well. He will gain harvest efficiency, and open up many more marketing opportunities for him...In my area a building site has more value if there are no bins or animal buildings on it.
Without going into details, on paper I should net $35,913.72 more on the acres, and drying/bin site I'm renting out this year rather than struggle here farming alone. It's not a big deal, but it beats going to work at Walmart.
I will be able spend more time helping my wife and daughter keep the businesses in town a float, drive tractor, combine, and truck, catch up on some badly needed tile, and building repairs, and spend a little more time with my special needs sons this summer...hopefully I'll earn my keep.
Coming to the decision I have, was not easy, it's taken over two years. It sure will be nice to have the never ending credit line paid off...for good. |
Thoughts on the whining around here
