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Veteran Contributor

Re: Spend Savings Or Cut Back On Inputs?

Ida;

   It used to be 35 years ago your landlords were all in a, lets say a 8-10 mile radius. Everyone was within 5-10 dollars per acre. Fast forward 35 years the original landlords are dead or have moved away. I have a landlord in Seattle, Sandiego, a bank in Mason City,Hertz Farm Mngmt Waterloo and a local guy. Now there is a 100 dollar+ spread. We are close to a seed corn growing area so our rents are going to be higher even though I don't grow any. To be honest in the last 10 years I have never told any of them this is what I'll pay. We talk in July and they say this is what they want-some of its reasonable, some of its not. The first year of 7.00 corn and the rents were way reasonable I did give a 50 dollar bonus-I may have to remind one landlord about that LOL

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Veteran Contributor

Re: Spend Savings Or Cut Back On Inputs?

On a lighter note on this subject Kay might be right. Maybe a person should think about renting ones ground out. One of my landlords called about windmills on his farm-staus of-personally I don't think they will put any on it or its years away. Any way he was telling me about his new 40 ft motor home-I know nothing about motor homes but it sounded pretty fancy and then he said it even has 2 bathrooms. Now what chance do you think I have getting his rent lowered

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Veteran Advisor

Re: Spend Savings Or Cut Back On Inputs?

SW   -  Lots of character being built now with the spray rigs running 2 weeks behind -  farming as a part - time occupation even at 16 -24  rows has mega character setting ---Raining as we speak with folks now wondering what happened to their N - where did it go - where did it go ?    

Honored Advisor

Re: Spend Savings Or Cut Back On Inputs?

k289,

 

Good points,,,,,, areas are different.... for us it is such a big jump from part time to financially viable...... our dry land production is just not that good and irrigation is being strangled financially from several directions....and costs are not going to be pressured by reduced demand..  Too many other factors drive up the costs of seed & fertilizer for example....  

 

Just guessing but I am thinking for example in the case of fertilizer.... Liability, handling, regulation, freight, construction to meet code, insurance rates(including WC), production overhead, etc  all combined contribute more to cost.

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Veteran Advisor

Re: Spend Savings Or Cut Back On Inputs?

How do you pencil in , recover,   lost - leached  N  expense - maybe N r C s  will have a SAVING TAX PAYER  rebate OR STPR ?

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Senior Contributor

Re: Spend Savings Or Cut Back On Inputs?

Nothing costs more than poor yields and if crop inputs are not a determining factor then it's a waste of money to buy them when prices are high as well as when prices are low. As to cash rent prices, the market will determine that. If your neighbor will offer more, chances are you won't get a reduction. It depends on whether you shared the wealth when corn was $7. Maybe we need a minimum rent law or something on that order.

 

Cutting back on revenues is like cutting taxes when you got a huge debt. Sell stuff you don't need or you don't use. Interest rates are incredibly low so borrowing doesn't cost much unless you can't pay it back Self financing costs a little less but no one will call your loans.

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Honored Advisor

Re: Spend Savings Or Cut Back On Inputs?

You make the same point I stated to our SIL yesterday. The kids are starting to talk about buying another tractor. I said they might want to wait until the noose starts tightening up on folks this fall...might get a bargain this winter.
Honored Advisor

Re: Spend Savings Or Cut Back On Inputs?

K289,

How do you pencil in lost.................?

 

You don't replenish,,,,, at these prices you enhance....  If theres 200 lbs N pushed down you apply another 40 and hope it roots into some......  Costs are more "out of our control" than at any time in my life....

 

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Veteran Advisor

Re: Spend Savings Or Cut Back On Inputs?

That is the ups and downs of this  A G  arena with the unknown lerking around each flip of the calendar - - - point being pain  vs.  gain  or how much Chariactor does one with stand --- Humbling expierence's have given me more insite to the fact maybe that a lesser operation is not quite as stupid as some of the expert's might make lite of --- The  N  being pushed or pulled down will have to be dealt with by some else in the future like what is taking place in my area now -  35 ppm N in irrigation well and the experts aren't wanting to talk about ---    

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Veteran Advisor

Re: Spend Savings Or Cut Back On Inputs?

So when you figure your N budget for corn, how much credit do you allow for the N in the irrigation water?

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