SmokinM":w1mi1x1r said:
Most here run on leased land myself included( I am not a big operator tho). Can't afford land to buy it so you have to find someone that has invested in land or inherited and is smart enough to let somebody else take care of it. Lease rates here are cheap and stocking rate can be decent, the problem is finding land that isn't tied up already. Usually fence is total junk if they give the lease up. Hard to get long term written leases as well. Mostly gentlemans agreements and most of the time we are gentlemen about it. Grain farmers got real aggressive for a few years but low grain prices have leveled the playing field some. Big places tho they still keep tied up so all us cow guys get are little places spread out.
As for profit, if you make it here it is on leased land, extreme profit is if you grow something other than cattle. I however am to pretty for jail so I don't grow it. :cowboy:
Wish I could LIKE your post a half dozen times!!!!
We are considered big in this area. We run between 175 and 200 head brood cows. 99% leased land. Yes, it is too expensive to try to buy the land in most cases. Avgs 6-10,000 an acre here unless in real big parcels, then at least 5,000/acre. Friend's elderly aunt just passed, maybe 200 acres I think, nice house, bank barn that needs some work, decent but not all great fences, asking $800,000. We pay an average $40 per acre for rented land. Most places are in the 25-40 acre size. Fences range from pretty good to "just wish there was a fence" type of fences. Several places we have done fencing in exchange for rent. Lost 2 places this year to sales of the land and will lose another 20 couple acres, place was sold with the stipulation that the lease had to be honored until Thanksgiving. We've been there 25+ years. Nice house, beautiful bank barn, good fencing, split in two pieces for some rotational grazing, (plus we have the 22 acres across the road), $325,000. That's 10,000 acre plus 125,00 for the house & barn.
We have a couple that are long term, but most owners don't want to get tied into it. So you don't do anything extra because you might not have it next year. A couple of cut throats, trying to steal places out from under you too. We will be cutting our numbers this year, mostly through selling some old cows and open cows. Culling will be very tough; no extra chances for open cows this year. And if they have crappy calves, they may go even if bred. May keep fewer replacements this year too because we have alot of heifers to choose from so we can be very selective.
That said, just heard that there is a guy who bought a place we used to have, was very dissatisfied with present condition of farm, had seen pictures from 5 years ago, and talked to several people who knew when we had it. He wants us to take it over again. Absentee owner who invests in properties.... Money seems to be no object, so wants all NEW FENCES and is looking at two adjoining properties to buy. Could work into a sweet deal but not counting on anything. Will see. Seems to be pretty particular and I don't have alot of patience for that but might be okay.
We bought 75 acres for 3,000/acre 2 years ago, then bought the house on 2 1/2 acres because the water is on the house and the right of way goes right along the house. House cost 100,000, but it puts the farm "back together" and the house is rented to pay the mtg on it. Cows pay most of the mtg on the farmland. Alot of headaches though. House rent is $350 more than I pay where I am so no way am I going to move there, plus it is 25 miles further away from 80% of the dairies I milk test. It is investment, a good price for the land and it will bring more than what is invested.
Yeah, we just aren't into growing "ALTERNATIVE" crops. I'm too old to want to spend time where I can't go where I want, or do what I want!!!!!! Too set in my ways to put up with rules and guards and stupid stuff.
