Land in VA Lease prices

[rockcreekfarm]

I am looking to lease about 50 acres in SW Virginia. It was once in Christmas trees so the quality is horrible. It would need a little fencing but a lot of work in lime and reseeding to get it back to grazing quality. My question is what would be a good starting rent price for something like this? I have never leased land before but this property came available and it joins the main part of my farm that's the only reason I am even interested in it. I am meeting with the property owner Friday 5/9 to discuss price, I was wanted to go in with a figure in mind so I don't get completely cheated. Thanks in advance for your help!

 

[J&D Cattle]

I would figure up how much the seeding, lime, and fertilizer will cost and use that as a starting point to see if the property is feasible. If it needs that much work I wouldn't want to also have to pay a seperate lease fee until it was in pasture quality shape or close to it. Good luck.

 

[skyhightree1]

I only rent a few pastures here and I pay 35 per acre. I will tell you this it's a bad idea to go in there saying what all you have to pay to get it into usable pasture cause lets be honest thats truly your problem not the land owner. What you should go in and say is there will be a great cost in which I am willing to occur if you will sign a LONG TERM lease no less than 5 years. I have gained row crop leases because guys were saying to the land owner your soil needs this that and the 3rd and is going to cost me alot of $$$ and tried to basically get land free or dirt cheap. If I want to lease land I will pay fair price but I will also keep my mouth shut about how much you have to spend because honestly if you P I Z Z that person off there is tons of farmers waiting for land to lease that won't bark at any reasonable price or extra work they will have to do. Lets also face it people want the most $$ they can get you hymn and ha on price he may pick up the phone and ask someone else. We lease a few thousand acres here on my side of the state we have learned some lessons when it comes to land leasing.

 

[rockcreekfarm]

Thanks for your comments. Thanks skyhightree1 you gave me a different perspective on it. The guy already knows his land is bad. His son-in-law told me he had it rented to a pumpkin growers but the soil tested to acidic and they turned it down. Them guys are paying $300 an acre here.

 

[skyhightree1]

Thanks for your comments. Thanks skyhightree1 you gave me a different perspective on it. The guy already knows his land is bad. His son-in-law told me he had it rented to a pumpkin growers but the soil tested to acidic and they turned it down. Them guys are paying $300 an acre here.

300 an acre ???????????? :shock: :shock: :shock: :shock: :shock: Why? Thats the highest rent per acre I have ever heard around here I expect that out in the midwest or somewhere or up north.

 

[rockcreekfarm]

That is what one christmas tree and pumpkin grower is giving for land this year and is made land for cattle and corn go sky high for everyone.

 

[skyhightree1]

That is what one christmas tree and pumpkin grower is giving for land this year and is made land for cattle and corn go sky high for everyone.

Keep those guys down there thats crazy I had mentioned to someone else that I thought about raising pumpkins since a local pumpkin patch went out of business but they must be making a killing to willingly pay 300 per acre.

 

[kenny thomas]

That is what one christmas tree and pumpkin grower is giving for land this year and is made land for cattle and corn go sky high for everyone.

Keep those guys down there thats crazy I had mentioned to someone else that I thought about raising pumpkins since a local pumpkin patch went out of business but they must be making a killing to willingly pay 300 per acre.

I hear of some of the land in Grayson Co, VA that is so steep you cant get any machines on it selling for $6,000 an acre for Christmas trees. I think lots of it rents for 300 an acre and more. The speciality crops have taken over that area.

 

[skyhightree1]

That is what one christmas tree and pumpkin grower is giving for land this year and is made land for cattle and corn go sky high for everyone.

Keep those guys down there thats crazy I had mentioned to someone else that I thought about raising pumpkins since a local pumpkin patch went out of business but they must be making a killing to willingly pay 300 per acre.

I hear of some of the land in Grayson Co, VA that is so steep you cant get any machines on it selling for $6,000 an acre for Christmas trees. I think lots of it rents for 300 an acre and more. The speciality crops have taken over that area.

WOW... that is insane. Maybe I should be raising Christmas Trees instead of cutting trees down.

 

[rockcreekfarm]

The land I am looking to rent is in Grayson County. There is only one farm I know of around here (Alleghany, NC/Grayson, Va) that is giving the $300 and they are getting every piece of land steep or flat.

 

[kenny thomas]

I hear of some of the land in Grayson Co, VA that is so steep you cant get any machines on it selling for $6,000 an acre for Christmas trees. I think lots of it rents for 300 an acre and more. The speciality crops have taken over that area.[/quote]

WOW... that is insane. Maybe I should be raising Christmas Trees instead of cutting trees down.[/quote][/quote]

Elevation and growing Frazier Fir Christmas trees is the difference. They will not grow where I am or where you are.

 

[skyhightree1]

I hear of some of the land in Grayson Co, VA that is so steep you cant get any machines on it selling for $6,000 an acre for Christmas trees. I think lots of it rents for 300 an acre and more. The speciality crops have taken over that area.

WOW... that is insane. Maybe I should be raising Christmas Trees instead of cutting trees down.[/quote][/quote]

Elevation and growing Frazier Fir Christmas trees is the difference. They will not grow where I am or where you are.[/quote]

Oh OK. One of the guys that lived near us in Floyd grew Christmas trees and some made it to the white house. Names Clark's Christmas tree farms

 

[kenny thomas]

That should have paid real good but I bet he donated it to them. I actually remember that and helped haul it part of the way.
Think of it this way. They can get easily 1000 per acre and maybe more. Frazier Fir sells for maybe $75 each so every 8 years that acre produces $75,000 worth of trees. Now there is some labor in it and chemical to spray but still a lot of profit left. So in 8 years they might pay 2400 in rent per acre, that still leaves a lot of profit.

 

[skyhightree1]

That should have paid real good but I bet he donated it to them. I actually remember that and helped haul it part of the way.
Think of it this way. They can get easily 1000 per acre and maybe more. Frazier Fir sells for maybe $75 each so every 8 years that acre produces $75,000 worth of trees. Now there is some labor in it and chemical to spray but still a lot of profit left. So in 8 years they might pay 2400 in rent per acre, that still leaves a lot of profit.

Very good point you raise maybe I should plant some Christmas trees on our land in Floyd lol I never knew it was that profitable.

 

[kenny thomas]

That should have paid real good but I bet he donated it to them. I actually remember that and helped haul it part of the way.
Think of it this way. They can get easily 1000 per acre and maybe more. Frazier Fir sells for maybe $75 each so every 8 years that acre produces $75,000 worth of trees. Now there is some labor in it and chemical to spray but still a lot of profit left. So in 8 years they might pay 2400 in rent per acre, that still leaves a lot of profit.

Very good point you raise maybe I should plant some Christmas trees on our land in Floyd lol I never knew it was that profitable.

Call the forestry office there in Floyd and ask for Dennis. He can give you all the current info and help you get started. Tell him I told you to call. We have known each other for almost 40 years.

 

[skyhightree1]

That should have paid real good but I bet he donated it to them. I actually remember that and helped haul it part of the way.
Think of it this way. They can get easily 1000 per acre and maybe more. Frazier Fir sells for maybe $75 each so every 8 years that acre produces $75,000 worth of trees. Now there is some labor in it and chemical to spray but still a lot of profit left. So in 8 years they might pay 2400 in rent per acre, that still leaves a lot of profit.

Very good point you raise maybe I should plant some Christmas trees on our land in Floyd lol I never knew it was that profitable.

Call the forestry office there in Floyd and ask for Dennis. He can give you all the current info and help you get started. Tell him I told you to call. We have known each other for almost 40 years.

KT I have spoke to dennis before when we had some timber logged he gave me a few people that he recommended. I will run the tree thing past my grandmother since she owns the property my cousin farms it and uses it for his cattle. I know there are a few tree farms there in floyd but clarks is the best and most widely known. I will tell him you told me to call him and bother him once I figure out if its something we may try.

 

[Toad]

I planted trees in Floyd and got the pines from Dennis. Now I run into him every so often because I volunteer on the local fire dept and we have to call them out on larger bush fires. Super nice guy!
We planted as many as 12,000 trees a day and hundreds of thousands every spring when the nursery business was booming. Things have slowed down a lot however, not nearly as much demand or profit to be made. I'm not sure where you are getting $75 wholesale for a christmas tree but I sure wouldn't mind getting in on that deal. Around here you are lucky to get an average of half that. Also while we would plant 1,000 trees per acre you would never get anything close to that many back off. Also when thinking about the money you may make off of trees you need to keep in mind the cost to do the work. Spraying and trimming each year, mowing several times a year. When I was into it many places were leased with the landowner being payed per tree when they were harvested. I now know of 30 acre tracks that never got the first tree off and in the end had to pay for a dozer to clear the land after the lease ran out.
I guess its a bit like farming, right now with the high prices everyone thinks they can get rich by buying a couple cows. Most have no idea of what it takes to make it work.

 

[skyhightree1]

We have timber investment properties here and just thought it be something nice to try with another idea I had not a get rich scheme. I am thinking about doing a pumpkin patch with haunted hay rides etc have a farmers market animal swaps etc and figure I could potentially market and sell Christmas trees there.

 

[Dave]

I would sure like some of that $75 Christmas trees. Last winter here the wholesale price was $8 a tree baled and loaded on your truck and there are lots of trees being pulled out because they didn't have takers at that price.

 

[skyhightree1]

I would sure like some of that $75 Christmas trees. Last winter here the wholesale price was $8 a tree baled and loaded on your truck and there are lots of trees being pulled out because they didn't have takers at that price.

lol My family that lives in northern va next to D.C. said they are more than 75 there.