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Posted 1/10/2019 18:39 (#7235643 - in reply to #7235433)
Subject: RE: 200 acre profit

frytownfarmer - 1/10/2019 16:38

What is acceptable income off rent? If you didn’t have any equipment and had to hire planting, spraying, harvest, etc out so add those custom rates into your inputs...

What do you expect the land to return you? Especially in this past year or this up coming year..




If was going to cash rent ground and have it custom farmed would work it like this.

For example

Would find somebody that farmed 1500 acres and pay them $100 acre to custom farm 500 acres of ground that I cash rented .In order to custom farm the 500 acres, they would need to buy their seed, chemicals , fertilizer, and crop insurance from me. @ $35 acre profit on inputs and ins x 1500 acres = $52,500

175 bu corn x $4 =$ 700- $100 custom farm- $200 for chem; seed, fert- $300 rent= $100 x 500 acres = $50,000+ $52,500 = $102,500 on 500 acres = $205 acre profit.

Edited by coup 1/10/2019 18:39
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