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Senior Contributor

Land rent auctions poll

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Veteran Advisor

Re: Land rent auctions poll

$100 or so is the dry fert (potash, phos, sulfer, etc) cost of producing corn or soybeans each year. If you don't have a fertility clause in the contract, and you have land that is high in fertility, a land auction is setting yourself up to hire someone to basically "mine" your soil for a few years , extract what they can, and move on.

 

If you intend to sell the land in five years, it might be allright, but buyers will discount a "drained" farm , too.

 

There really is no substitute for long term renters, that treat the land well.

 

What these auctions show is the high end rent for probably "bad" renters.....find a good renter and use rates about $100 lower.

 

my two cents.

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Honored Advisor

Re: Land rent auctions poll

Needs another choice--------something smelly

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Senior Contributor

Re: Land rent auctions poll

Totally agree Red Steele.  Except here it was a stipulation that the owner was to be reimbursed for fall fertilizer and tillage already completed.  I assume 3,300 acres of fertilizer fetched the owner a hefty discount.  And my price for chisel plowing there in that instance would be, oh, I don't know, $100 an acre.  Plus my diesel cost.  Smiley Wink  (I don't know what the clause was for that, but it better have been cleary stated before I would even get a bid card!)

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Veteran Contributor

Re: Land rent auctions poll

I assume you heard about the cash rent auctions in Iowa last week.  If I have the story right the owner applied fertilizer or hog manure, enough for the duration of the 2 year lease before the auction and then the winning bidder got the bill and had to reimburse the owner.  In 2 years he will do the same auction and maintain fertility.  Seems like a good plan.

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Veteran Contributor

Re: Land rent auctions poll

My post was written while you were posting...sorry

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Veteran Advisor

Re: Land rent auctions poll

That I did not know. How did he come up with enough hog manure for 3300 acres, or was that just on some of the land?

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Veteran Contributor

Re: Land rent auctions poll

Each farm had an invoice attached if there were expenses due:

 

http://alhughesauction.com/?page_id=8&auction_id=29

 

 

 

 

lease2.jpg

 

lease.jpg

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Senior Contributor

Re: Land rent auctions poll

So he is at $106/acre for fertilizer.  And you will still need 130 pounds of nitrogen to go on your own.  And I was wrong about the chisel plowing?  There was none, it was tillage as a dragline or manure tank with a bar?  Hmm, looks like a better bargain with every detail that comes out!

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Veteran Contributor

Re: Land rent auctions poll

Updated post with 2nd receipt.  V-ripping charge at $13.45 on some acres.  In 3500 gallons of hog manure there is probably 140# -150# of N plus the extra 70 units he put on.

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