Take the money. Save out a few acres for what ever. Spend the money on another place and in the end of 10 years have them both. Maybe by then everything will have settled down to where people can make some rational decisions. At least the ground would have a little time to rest. Take the money.
Tough decision, sell out or stick it out?
- Thread starter tom4018
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larryshoat
Well-known member
CRP is a good deal for the guy that has some marginal land and doesn't want to farm it or have the hassle of renting it out . Most of us are just not wired that way or we would not be in this business to begin with .
Larry
Larry
OP
OP
tom4018
Dumb Old Farmer
One of my problems is that I always second guess my self. What if I would have...?
Got a copy of the guidelines yesterday and a few things concern me, they cost share the intial seeding but if the stand fails you are responsible for restoring it. The cost share and rental payment all say they are subjuct to availability of funding. So does that mean if the farm programs change this may go away?
Talk about straddling the fence, I am there and don't know which may to go. :???:
Got a copy of the guidelines yesterday and a few things concern me, they cost share the intial seeding but if the stand fails you are responsible for restoring it. The cost share and rental payment all say they are subjuct to availability of funding. So does that mean if the farm programs change this may go away?
Talk about straddling the fence, I am there and don't know which may to go. :???:
codymccue
Well-known member
one thing for certain~make sure you have solid facts and all your questions answered before you make any decision.
I'd get ahold of whoever runs that deal and have them answer your questions with plain English and not leave anything to chance.
good luck.
I'd get ahold of whoever runs that deal and have them answer your questions with plain English and not leave anything to chance.
good luck.
john250
Well-known member
I keep reading this thread, Tom, and I keep getting hung up on the $190/acre.
That seems really high, to me. Those payments are supposed to be based on average cash rents in an area.
I know the land around your area is very productive. But, up here in the corn belt, rents are still less than $190/acre.
Is your land unique in some way?
That seems really high, to me. Those payments are supposed to be based on average cash rents in an area.
I know the land around your area is very productive. But, up here in the corn belt, rents are still less than $190/acre.
Is your land unique in some way?
OP
OP
tom4018
Dumb Old Farmer
John,john250":249pepqu said:
The program is different than regular CRP, this CREP program is for only certain areas they are trying to protect water quality they say. They are paying incentives on it and double the normal rental rate. I had them redo the plan and took a few acres out around the house and the average rate is $197 now for about 40 acres, some of the ground is over $200.
I got a copy of the terms yesterday to read over and some things concern me. As I said before it has to be seeded in native grasse and they cost share it. The terms state that you have to mantain the cover for the contract and they say the native grasses are hard to establish, so you would be out more money. They also keep stating payments and cost share are subject to funding.
Got a lot of thinking to do this weekend.
If you sit back and really read your question i think you will see the answer you are looking for, it was very easy for me to determine what you really want by what you wrote. Read it again and I think you will find your answer. good luck to you either way you go.
john250
Well-known member
tom4018":j5vv3etv said:
Thanks. I get it. Tough choice.
HerefordSire
Well-known member
$197 per acre * 40 acres * 10 Years = $78,800
Is this the 10 year monetary number you are evaluating?
Is this the 10 year monetary number you are evaluating?
larryshoat
Well-known member
Tom, I would also consider what inflation might do to that amount of money in 15 years . Just a thought .
Larry
Larry
OP
OP
tom4018
Dumb Old Farmer
Mike M":2wto0aag said:
I wish it was that clear. I see pros and cons both ways. The gauranteed money would assure my mortage payments, but probably would not get back into it in 15 years. I am told the mix of grasses they put in would be useless for hay and I would have to reseed it in something for hay if I got back into cattle. One reason i moved here was to get away from the city and do what I wanted to do. When we lived in the city we looked at buying some different houses out of small tracts of land and passed on them because of restrictions. Just don't like being told what I can do with my property. Then I am not get any younger and this would give me more free time, what would I do with it I don't know.
Workinonit Farm
Well-known member
tom4018":1o01o6o1 said:
Tom, its a tough decision, but somewhere inside of you, I think you've already made that decision. Re-read what you've written.
I can definitely understand the financial issue, taking care of the mortgage etc. BUT, you have obviously found ways to cover your mortgage, you would probably still find a way to pay the mortgage if you did not sign up for the program.
Good luck, and keep us posted.
Katherine
HerefordSire
Well-known member
tom4018":q47agf4a said:
A couple of more questions if you don't mind:
(1) What is the current market value of the same 40 acres in question?
(2) What are the terms of your existing land note such as interest rate, term, payoff, etc.?
(3) What is your professional expertise?
Workinonit Farm
Well-known member
tom4018":3v6jrrca said:
Good question. Possibly slim, as funds may dwindle, or possible pretty good seeings how there are many organizations trying to preserve land through CREP programs, Conservation Easments etc.
Katherine
KenB
Well-known member
A couple of more questions if you don't mind:
(1) What is the current market value of the same 40 acres in question?
See land in this area for $1200-1500 an acre.
(2) What are the terms of your existing land note such as interest rate, term, payoff, etc.?
Owe about 15 more years at 5.875% balance of less than $80,000
(3) What is your professional expertise?[/quote]
Full time job is a service rep/mechanic.[/quote]
$1500 X 40 acres = $60,000
40 acres X $197 X 15 years = $118,200
Take the CREP money and buy some of that $1500 acre land, have your cows and make some money to boot. :tiphat:
(1) What is the current market value of the same 40 acres in question?
See land in this area for $1200-1500 an acre.
(2) What are the terms of your existing land note such as interest rate, term, payoff, etc.?
Owe about 15 more years at 5.875% balance of less than $80,000
(3) What is your professional expertise?[/quote]
Full time job is a service rep/mechanic.[/quote]
$1500 X 40 acres = $60,000
40 acres X $197 X 15 years = $118,200
Take the CREP money and buy some of that $1500 acre land, have your cows and make some money to boot. :tiphat:
1982vett
Well-known member
KenB":2w4omf36 said:
Risk = CREP money goes by-by, you are stuck with two land payments and half a herd of cattle. However, land is usually a good investment. Wish their were good land to be had around here for $1500/acre. Now that I have the means to buy it, can't touch it for less that 3 grand.
GMN
Well-known member
tom4018":3sscp8bk said:
If you have any doubts don't do it.
Govt programs can change, do they give you a 100% guarantee that this program will be like this for the next 15 years? Personally I do not put much stock in these programs. I think the Govt and the local FSA agencies are pretty clueless where dairy and beef farmers are at these days.
GMN
