let me bounce something off you

[cross_7]

your input would be appreciated
2700 acres place in NM has come up for lease.
i'm not familiar with the area and the owner has always just run yearling, but i guess it at about 30-35 acres per cow.
the winter there can be tough some years but not as bad as some.
he wants 12.00 an acres with 10 year lease.
i haven't seen it but he says fences are good and has good water.
12.00 an acre sounds too high for that country to me

what you think about this deal ?

 

[LRTX1]

At that price there is no room for profit. 420 dollars per cow dont leave anything left for your wallet.

 

[Anonymous]

I agree. That's nuts. Ask around what the going lease rate in that area is. Call an extension agent there he should be able to tell you

 

[cross_7]

i've wallered it around every way i know of and i can't see how to make it work.
yearlings maybe ?

 

[larryshoat]

What would a farmer from Ohio know about that kind of a deal? But then again when has that ever stopped me.

Looks way to high to me, it would be $420 per head in the lease, I would think $100 in the lease would be more like it.

What would that kind of ground cost to buy? Whatever that is I would multiply that by about 5% as a starting point.

Boys we ain't gonna have these high price cattle forever, this thing will change sooner or later.

Larry

 

[Isomade]

Price per acre don't mean much with a poor stocking rate. You would be much better off leasing land around here where you can run a cow to 4 or 5 acres and paying twice that much. Going rate here is 20-25 per acre.

 

[cross_7]

lease rates around here are 10-15.00 depending on how good it is.
i've looked to lease a place close to my home place but hadn't had any luck.
i've even looked at buying another place but everything is overpriced, so overpriced i might sell mine if i could get what their asking.

sure wish that NM place wasn't so high