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Veteran Advisor

Re: Land Prices Set To Rise

The way I understand it, and I could be wrong, is that the State has limits of how much certain things can test in the soil, and the feedlots are applying as much manure as they can, up to the max. allowable by the state, on their rented ground.  These levels are just to the point, they take the top yield potential off corn.  Remember, 90,000 calves poop a LOT, and the costs of spreading manure go up exponentially, the farther you have to haul it. 

It would make sense if Phos was one of the things to watch, as alfalfa does good in a high Phos environment, and will pull more out of the soil per year than corn does, which follows the idea of planting alfalfa in those fields. 

 

Another thing I have been told, in cattle rations fed lots of DDGs, the manure tests 'hotter' than traditional rations, whatever that means.  My guess is it takes more acres to spread a given amount onto.

 

Again, it is not like they are having crop failures, but more like the yields drop 15 BPA or so, it just takes a little off the top.

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Veteran Advisor

Re: Land Prices Set To Rise

That is my hope, that I can make just a few extra bucks per acre for 20 years, get my debt paid down, or even put something away, so that when the time comes, I can pay them going rate for the land that they were so nice to let me farm.  The old man basically said that if his kids aren't going to farm it, he'd rather it go to someone who he knows will take good care of it, rather than someone he hopes will.

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Senior Advisor

Re: Land Prices Set To Rise

That is where i differ from your landlord. My kids are far more important than the land we own. I'm not going to give a special deal to a tenant at the expense of my heirs.

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Veteran Advisor

Balance

Don, raising children that value proper stewardship of the land and the other precious resources of our planet is an important contribution to the world. Getting top dollar for your farmland should not be as important as leaving behind good citizens, which includes kids that may realize that top dollar is not always the best route. If my sons take over the Steele operation, I think that will be a great day and a tremendous legacy. However, if they do not, the land will hopefully be farmed or purchased by an active farmer that values soil improvement and conservation, land and water stewardship, and all the other things that make for a good farmer. I have not inherited anything of any substantial value in my life, but I did inherit a good work ethic and the ablitly to read people. And that is worth much more than a fat rent check or a sale of land to the top bidder so I can buy some new vehicles.

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Veteran Advisor

Re: Land Prices Set To Rise

Don't worry, his heirs are well taken care of.  He figures he has 'enough' and is cutting a break for a 'little guy', instead of just trying to amass the most possible wealth in his lifetime.   Some people are silly that way.

 

 

 

Besides, they tell me that the value they put upon my better care of the land, offsets the few dollars an acre less than the BTOs will pay.  Maybe they are just trying to make me not feel like a charity case, but on the other hand, maybe they think the way I take care of things more than offsets a few dollars, and it isn't really a 'special deal'.  I doubt I will ever know.

 

However, unless you've dealt with highly erodable land, cover crops, proper rotations, etc, you might not see where I am coming from.

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