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farmerguy89
Posts: 892
Registered: ‎06-30-2012
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Rent based on yield potential.

Guys, I am wondering what is a fair amount of rent per bu of yield potential is?

 

I have dug up info that says 1.25/bu of corn yield potential, but I have read about $500 rent and I see that everyone has different prices that obviously far exceed that 1.25/bu of corn potential. To me, if your paying 500/ac rent, your taking on to much risk.

 

Right now, I am paying at most 1.25/bu on some ground, and a lot of land at 0.35-0.60/bu of yield potential cause thats what I negotiated prior.

 

My 5 year county avg is about 146bpa, with a standard deviation of about 18 bpa. At what dollar per bu of yield potential do you call it quits?

 

I ask these questions, because I tried to move into a more competitive area, but my entrance was blocked. I was told 180 was the highest that everyone had heard of.. apparently someone went at least 200 or more dollars per acre. Some areas too, I have heard of 400/ac for this type of 150 bu land.