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tygrus2000
Visitor

Big Input Farming

Being from Canada, I am shocked to see some of the inputs our american neighbors budget for a crop.

 

In Canada, $100 per acre rent would be the absolute top end anyone would pay on the best dirt in the country.  Most rents are $65-80 and guys here wont overpay just to hold it.  If the landlord wants more and more, many will just walk.  Too many lesons from the 1980s.  Eventually the Hutterites might get it and they can farm at lower cost than most others.   It is common to see different renters every year on different patches of ground.

 

The other suprising thing is all this seed that is only purchased from suppliers.  Up here, only canola is bought from suppliers and its only seeded 6lbs per ac.  Even then, you can buy open pollinated varieties from local farmers but your weed control is a bit trickier.   Nobody buys any other seed.  Flax, Wheat, Durum, Lentils, Peas, Chickpeas, Canary, Barley, Oats etc are all allowed as farm saved seed and farmers are pretty adamant about keeping it that way.  Genetics be damned. 

 

Also, we pay more for fertilizer and chemical, so it is used more sparingly.  Most will try to get down about 200-250 lbs of fertilizer during seeding and thats it.     Very few will go back in and add more in mid season regardless of what the crop looks like.   

 

On my farm we budget $125-150 per ac all in costs including land payment and taxes.  Any thing above that is too much risk and our crop insurance program is just enough to put you on your feet again for another year if you have a disaster.

 

We also face extreme labour shortages here since most people can go work in the oil patch for twice what even the big farms are paying.  As a result, we have some monster sized farms with a lot of iron and only a few people taking it all off.   More and more is going custom harvested too.    Some are charging $25 per ac to harvest and haul to terminal. 

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7 Replies
smokeyjay
Advisor

Re: Big Input Farming

Tygrus, we may have some things in common, but the similarities ends in our cropping practices, not to mention weather conditions and soil types.

You mention using between 200-250 lbs of fertilizer. In my area, a 120-40-0 blend is pretty much our top end for corn, milo or wheat. Cash rents are similar to yours but I am not in the corn belt. If I kept total expenses below 150 dollars, I am better off keeping the seed in the bag.

Your crop mix is different from ours. How can our systems even compare when they are so different? You have cold weather. We have high humidity and high temperatures. We have extreme weather conditions of drought and 115 degrees and 50 mph winds followed by 30 inches of rainfall in one week. Your weather may be just as different as well.

What puzzles me is why you want to provoke an argument by putting down your Southern neighbors. Many americans have relatives living in Canada, including yours truly.




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buckfarmer
Senior Contributor

Re: Big Input Farming

Yea it's hard to compare my operation to Shaggy's, Hobby's, or even some in my own state. Even most in my county are quite different.
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BA Deere
Honored Advisor

Re: Big Input Farming

Well, rent is going to be in the neighborhood of 3% of what land is worth ($300 for $10,000/acre) but that can very.  A 230 bushel corn crop removes 150lb of N, 80lb of P 60lb of K 15lb of S.  Seed corn +$300 a unit of 80k, planted at 36K, you don`t get 2 1/2 acres out of a unit, so about $130/a in seed. 

 

In the past that 230 bu grossed about $1400, so it was relatively easy to put all the pieces together, going forward it looks like 1/2 of that revenue is probable and the inputs have come down either not at all or not nearly enough to relect that. 

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farmerguy89
Advisor

Re: Big Input Farming

Tygrus, your talkIng western praries right?

Once you hit bc, or Ontario or Quebec its totally different.

I know some have paid 400/acre south of me. Some slightly south have done 200-300/acre.

I'm averaging 81, with a high of 160/acre.

There's only 1 loonie bin landlord in my portfolio, other than that hey are all level headed/ under my control. I have been able to renew contracts at old "low rents" too. I suspect I will b able to lower rent, but I'm not in a hurry w 150 corn, 42-44 soy and 80 by wheat..
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farmerguy89
Advisor

Re: Big Input Farming

I guess I don't get to pay big rents cause I'm farming among incompetents and part timers
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weedman
Veteran Contributor

Re: Big Input Farming

I'll bet those landlords like being under your control.

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Mike M2692830
Senior Contributor

Re: Big Input Farming

BA, I don't want to pick off a scab here but seed costs should be figured a little lower per acre then what you quoted. I looked over a majority of the invoices I put together for customers. On an order that qualifies for a 10% volume and is pd for in time to earn a 9% cash discount! one can figure a per acre cost around 110 per acre not 130. That would be an order including top selling high priced hybrids and proportional amounts of refuge if not already in the bag. I figure 20 bucks is 20 bucks in your pocket. FWIW.....MikeM
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