Farm Rent

The thread on the new Gleaner had some posts about farm rent.  Rather than take it farther off subject, I thought I would start a new thread.

What kind of rent is being paid for good farm land with a 175 bpa average yield (215 this year)?  Also, what kind of flexible rents are out there?  I've been using a flexible rent in recent years because I think the land owner should share both the risks of a poor year and the benefits of a good year.  The trick is structuring a flexible rent.

I rent mine 50/50 crop share. I pay half the cost of seed, fertilizer, and herbicide, all of the land taxes and utilities. My tenant delivers the crop to the nearest elevator.

Gerald J.

Cash rent round this neck is $75-$600/acre!

Cash rent around here is $200 to $450/acre, hardly anyone does it on shares.

the national average cost for corn per acre is approx. $450/a
At $4/bu and giving 1/4th rent = $150 rent on a 150bu/a yield BREAKS EVEN. 250 rent needs 175 bu to break even etc. so if you make 200 bu /a you make $100/a profit at 250 rent. Now how many acres will it take to make a $100,000 deere tractor and combine payment before you can take the kids to MickeyDees??
The soybean issue at $350-400/a cost is more dismal.
Which is the reason sales figures for new big ticket items are off - even more that what the biggys claim.... shhhh....

According to Iowa U, the variable cost of 200 bpa corn (not including rent or machinery depreciation) is $423/acre.  http://www.extension.iastate.edu/agdm/crops/pdf/a1-20.pdf   That's for corn following soybeans.

200 bpa times $3.30/bushel (local new corn price in Sept) is a gross of $660/acre.  That only leaves about $235/acre for rent, machinery depreciation, and profit.  If I were getting 1/3, the renter wouldn't have anything for machinery depreciation or profit.  A lot of cash rent in SW Minnesota has been $200 to $300+ per acre, but I've only been asking 25% as the renter is a good farmer and person.

[QUOTE=427435] According to Iowa U, the variable cost of 200 bpa corn (not including rent or machinery depreciation) is $423/acre.  http://www.extension.iastate.edu/agdm/crops/pdf/a1-20.pdf   That's for corn following soybeans.

200 bpa times $3.30/bushel (local new corn price in Sept) is a gross of $660/acre.  That only leaves about $235/acre for rent, machinery depreciation, and profit.  If I were getting 1/3, the renter wouldn't have anything for machinery depreciation or profit.  A lot of cash rent in SW Minnesota has been $200 to $300+ per acre, but I've only been asking 25% as the renter is a good farmer and person.



Mark its good that you value your tennant like that and try to be fair with him, that's something that has disappeared in this day and age of greed. Most landowners anymore only care about how much they can get and don't care if the farmer actually takes care of the ground or not, and a lot of farmers anymore don't care how much they pay as long the neighbor don't get it, no matter how much they already have. Sorry for the rant I just get disgusted with way people think anymore. To answer your original question here in central I'll it varies from 125-300, also shares is pretty common around her too, 1/3-2/3 or 50-50


Edited by BPM75 - 31 Oct 2015 at 1:27pm

EP it's quite simple, keeping your neighbor away is partly mind game, and partly fear. The farmer is afraid to give up what may be ground that does ok most years, but the fear of your neighbor having a 'bumper crop' the very first year they have ground you had, would drive some farmers to a mental hospital.

200 to 375
Bto are reluctant to give up leases as they may not get it back

We get a 1/3 of whatever the crop dose on our best land and 1/4 on the rest. We also get the option to take part or all of our share in grain.

Edited by Wdtractorman - 01 Nov 2015 at 9:50pm

Good farmland in central IL. that can produce 175 bpa average and 215 bpa this year would bring a minimum of $300. per acre cash rent and quite possibly $400. per acre.  Depends on whether it's flat, rolling, tiled, fertility, road access, etc.  But we're known for having high cash rents in IL.  Some ground is going for over $500. per acre.  Of course this year's prices may bring rents down a bit.