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Fontanelle, IA | I will admit that I just don't get it. Get anything really.
Frankly, I would ask my self just how awesome or lack-of-awesomeness this piece of dirt really is? If I gave it up, then what would it cost me? Do I have certain machinery payments /fixed costs that will change drastically if I lose it? Am I right on a quantity savings discount break that costs me 1% or 2% or 5% on my entire seed order? What is my realistic vs. optimistic vs. pessimistic profit outlook for 2020 on this farm (simply yield x price less costs)? How much will you "give up" your PLC corn/ARC-CO projected payment in 2020 if you don't farm it?
My simple formula:
value of applied 2020 nutrients + projected PLC/ARC payment + 2020 net profit + change in my equipment fixed costs/acre + any change in input Quantity savings + any interest on the borrowed money for inputs/prepaid supplies + whatever else...…. I don't think I would be greedy... because word WILL travel and you MAY have to ACCOUNT for this with your other landlords at some point.
EDIT: If your number looks a little unrealistic, then I don't think you would be out of line to just tell them, "I really have a hard time putting any number forward that you would consider realistic while not giving away my whole cost structure - so I am planning to farm it to the best of my abilities in 2020 so that you can take over in 2021.... "
Big question is would you rather take the money and run OR take the risk + put in the butt time + invest all that money to maybe breakeven OR profit OR take the loss? Either could be a blessing!?
Best of Luck with your decision and moving forward!
Edited by Baby Robin 3/14/2020 21:33
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Land rent contract buyout?
