What are you willing to PAY ??

[Ojp6]

I personally don't see how row crop farmers make anything. My neighbor farms about 5,000 acres I would say, has nearly every farm in the area rented. One reason why there isn't any pasture for lease. But he has millions in equipment. 4 or 5 new John Deere combines, tractors, etc. I know good equipment is a must in that line of work, but geez!

There's a company near the sale barn I ship cattle out of, and they are farming upwards of 35,000 acres in the surrounding area. If a farm comes up for rent over 100 acres whether it's pasture or row crop, they are gonna give what it takes to get it and turn it into crop ground. They have one place they run a couple thousand stocker calves on, but otherwise they pretty much exclusively row crop. Them and a couple other big farms are part of the reason there are so many less cows in the area.

 

[Anonymous]

cheapest i sold corn for was 1.65 bu some of friends sold it 1.35 cheapest i sold beans for 3.15 in those days there were a lot of crosses in local courthouse yard .never ever write a plan to make top dollar ( bankers like plans to make top dollar) you are not a banker show him something good write a diffirent plan for yourself . get you small set of tools keep your head on straight an feet planted on solid ground .friend of mine asked me how i did it ,early 90s he had never delt with any kind of contracts or marketing period .that year he followed my advice he contracted half his crop at a good solid price then saw price move up a little so he lost his mind contracted the rest ,so now his whole production was contracted by first week of july , he said it was my fault it cost half as much as the crop to cover his contract yes it turned dry he didnt get half the yield he thought he would !an no he didnt have insurance! big fancy tractors an ect...seem nice but unless you can keep over head cheaper than your large competors keep your head on straight an keep a close eye on equipment cost.some people can make an two row combie work damn near 1000 acres and work 50 to 80 hrs off farm !

 

[OldCrow]

I personally don't see how row crop farmers make anything. My neighbor farms about 5,000 acres I would say, has nearly every farm in the area rented. One reason why there isn't any pasture for lease. But he has millions in equipment. 4 or 5 new John Deere combines, tractors, etc. I know good equipment is a must in that line of work, but geez!

There's a company near the sale barn I ship cattle out of, and they are farming upwards of 35,000 acres in the surrounding area. If a farm comes up for rent over 100 acres whether it's pasture or row crop, they are gonna give what it takes to get it and turn it into crop ground. They have one place they run a couple thousand stocker calves on, but otherwise they pretty much exclusively row crop. Them and a couple other big farms are part of the reason there are so many less cows in the area.

Where in the world do they find 35,000 acres in TN to row crop? I can only think of one part of the State that would have that much ground remotely close to one another and that would be North of Memphis and West of McKenzie. We have a farmer around here that does around 6000 acres and runs in 3 counties to do it. I don't know how he does it but he does it with new and near new equipment.

 

[Ojp6]

It's in Kentucky. Just across the border a little bit. There is a lot of crop ground north of Nashville a little bit though.

 

[Stocker Steve]

Several realtors recently told me there are lots of 100+ acre tracts and plenty of 1-5 acre tracts on the market, but 15-40-50 acre tracts are very very rare and they sell like crazy.

What prevents 100 acre tracts from becoming smaller tracts?

 

[Stocker Steve]

In another thread, (and this goes along with what Grit was saying) one of the fellas posted about rule of thumb to be a viable livestock op, you should double numbers every generation. I thought that interesting and probably accurate. My thought being, how can you double without procuring additional land (whether by lease or purchase). Point being, the generation before you has to have planned for expansion because it's almost a universal given that they could have purchased the land back then, cheaper than you can today. People who do this (and I try to be one) aren't purchasing the land for cattle per se, inasmuch as they are purchasing it for their heirs?

Grazing management can certainly double, and perhaps triple, stocking rates. After that you may need to consider irrigation...

Heirs? can be tricky. How many want to work weekends or calve out heifers?

 

[Stocker Steve]

Most of the buyers have sold a place somehwere else and are moving into the area.

We send a few English to Missouri, and get a few Amish from Wisconsin.
The Amish complain how liberal Wisconsin is, and seem to have cash after selling out there.

 

[Stocker Steve]

Basically the row crop farmers are like cattlemen. They buy because they want. Not because it works on paper :lol2: I would buy anything joining me if there was any way I could make it work. It's disheartening for me too because I'm taking my off farm income and using it to build my cattle operation. I guess it's all in what you want to do with your time and money. I'd rather buy cows than go to the beach, etc. to each their own.

What does "make it work" mean?

 

[Stocker Steve]

I hope to make money. What are the options though? Not plant a crop? Even if your not making money cash flow is a good thing. So Quit?

A lot of "crop land" here is being seeded down to grass/legume mixes here.
I don't think hay will be profitable next year, but I think cattle will.
So the question is are you flexible, or have you over invested in a specialty?

 

[JMJ Farms]

Basically the row crop farmers are like cattlemen. They buy because they want. Not because it works on paper :lol2: I would buy anything joining me if there was any way I could make it work. It's disheartening for me too because I'm taking my off farm income and using it to build my cattle operation. I guess it's all in what you want to do with your time and money. I'd rather buy cows than go to the beach, etc. to each their own.

What does "make it work" mean?

If I can find a way to pay for it. Usually means scraping the bottom of the barrel. But land is the best savings account IMO.

 

[OldCrow]

It's in Kentucky. Just across the border a little bit. There is a lot of crop ground north of Nashville a little bit though.

Gotcha, I was up that way about a year and a half ago. My Dad bought a dozer from a guy that did tobacco and some row crop. Beautiful country up in that area.

 

[tdc_cattle]

I hope to make money. What are the options though? Not plant a crop? Even if your not making money cash flow is a good thing. So Quit?

A lot of "crop land" here is being seeded down to grass/legume mixes here.
I don't think hay will be profitable next year, but I think cattle will.
So the question is are you flexible, or have you over invested in a specialty?

I only own 50 acres and share crop the 500 I row crop. Landlords aren't very perceptive to change.

I do rent a 40 from a grumpy old man that I've been row cropping but put half of it to RR Crabgrass this spring. He wasn't happy but it wasn't row crop ground anyway.

So as constructed I have very little flexibility. My 50 is half pasture and half corn ground. Strongly considering planting the corn ground to pasture. Want to see how the RR experiment goes before I do though.

I'd love to put some of my dads ground to pasture and run cows on it but he hates cows. Ran 150 Hereford moms with my grandpa in the 70's and sold out to row crop, nothing can make him go back.

 

[bball]

In another thread, (and this goes along with what Grit was saying) one of the fellas posted about rule of thumb to be a viable livestock op, you should double numbers every generation. I thought that interesting and probably accurate. My thought being, how can you double without procuring additional land (whether by lease or purchase). Point being, the generation before you has to have planned for expansion because it's almost a universal given that they could have purchased the land back then, cheaper than you can today. People who do this (and I try to be one) aren't purchasing the land for cattle per se, inasmuch as they are purchasing it for their heirs?

Grazing management can certainly double, and perhaps triple, stocking rates. After that you may need to consider irrigation...

Heirs? can be tricky. How many want to work weekends or calve out heifers?

Even if you are already doing things like rotational grazing, MIG, etc, maintaining soil and pasture quality/fertilization? If you need to get into irrigation, may as well buy more ground.

 

[Stocker Steve]

Grazing management can certainly double, and perhaps triple, stocking rates. After that you may need to consider irrigation...[/quote]
Even if you are already doing things like rotational grazing, MIG, etc, maintaining soil and pasture quality/fertilization?[/quote]

Pretty inclusive list. At this point improving marketing is probably more economical than increasing productivity. If you still want to focus on productivity - - then driving up OM rather than maintaining soil, increasing stocking density, and using some high energy annuals in your rotation, would round out best practices.
Done selectively - - this will increase stocking rate, and perhaps allow you to cash flow additional land. Texas posters insist cattle cannot pay for land but this does happen in other areas. The challenges are being willing to walk away from some deals, and setting up your system so it still works when cattle prices drop.

 

[M-5]

Farm credit called me today and told me to bring her a contract for the land. 1 step closer to getting the deal done.

 

[True Grit Farms]

Good deal

 

[JMJ Farms]

Farm credit called me today and told me to bring her a contract for the land. 1 step closer to getting the deal done.

M-5, you don't have to tell me your business, but if I may ask, what were Farm Credits terms? Rates, number of years, % down?

 

[MikeBo]

My house sits on 40 acres and is right against town. I gave $2,000/acre 5 years ago and thought it was a bargain. I'd gladly give the neighbor who has 37 acres behind me $3,000. His piece also borders town although it a different road. In comparison I'm trying to get closed on a 120 farm approx 12 miles from town that is half pasture and half timber and will probably end up giving $1375/acre for it.

My farm is in southern Missouri as well as my families, wooded ground is around 800-1,000 and pasture ground is in the 1,300-1,500 range.

 

[M-5]

I figure most don't really give a rats azz about it but Here is a an update.

As of today , I am waiting on call to set the closing date in the next 2 weeks for property. It has not been a to big of a hassle. I've made 1 cutting of hay and will do the second cutting in about 3 to 4 weeks.

the deal is 33acres land fenced and cross fenced except one side that has all the HT material to fence it in. 90's? furnished doublewide in excellent shape, 40x60 wired and lighted barn with a 15x60 lean too off back , a 12x12 tack, feed, tool room on back side. 4" submersible well. RV hook up under barn. This is what I borrowed money on.

Now what else comes with the deal.

2004 tl100a 4wd cab tractor (no FEL) , 2010 or 11 br7060 baler, 8 wheel lely rake and caddy , Lift type 8 wheel rake and caddy, 10' tedder , 6' aerator, 80 gallon Ingersoll air compressor , there are a couple of other implements but im not sweating those details at the moment.

we are anxious to get it finalized , I have been chomping at the bit to clean up a couple fence rows and finish the fencing but due to the nature of the deal we elected not to tell anyone about it. His daughter let it slip apparently to his ex inlaws and my other neighbors last week and they started asking questions but he only told them I was leasing the fields and we discussed me buying it but He has not been paid. Most of the other implements he had belonged to this neighbor. as soon as its finalized Im going to take all of his stuff back to him and foster some good will cause a few things he has I want to buy.

 

[True Grit Farms]

Good deal and I'm glad to see your making progress. Hopefully you'll get the deal finished quickly. I might need to rent the barn and RV hookup.