Farm Subsidies

[Al_4_ISU 12409]

12 hours ago, Royalfan5 said:

Yeah but when your cash rent is 70 bucks an acre it’ll do just fine 

Absolutely.  $70/acre for 160 bu is more bu per rent dollar than what you'd see around here.

[Celery Man 20886]

[Js1 85110]

 

[Royalfan5 2348]

29 minutes ago, Al_4_ISU said:

Absolutely.  $70/acre for 160 bu is more bu per rent dollar than what you'd see around here.

Weather variance makes Kansas an interesting place to farm because the ground is priced for the shitty weather years, but it's pretty much good enough dirt that the good years can blow away anyone else on returns. Of course, you're socially obligated to grow wheat, milo, and have cattle though. 

[Ted Dantzler 144]

3 hours ago, Royalfan5 said:

Weather variance makes Kansas an interesting place to farm because the ground is priced for the shitty weather years, but it's pretty much good enough dirt that the good years can blow away anyone else on returns. Of course, you're socially obligated to grow wheat, milo, and have cattle though. 

Weather variance is putting it lightly, we have some family land in NW KS and got 26 inches of rain in 2019 and 13 inches in 2020. 

When we first inherited the land I was going through some numbers with my dad and they just weren't adding up so I asked him "How does anyone make money farming?" His response.... "The government". 

[washparkhorn 9935]

One needs mad financial skills to be a successful modern farmer. 

[Royalfan5 2348]

1 hour ago, washparkhorn said:

One needs mad financial skills to be a successful modern farmer. 

Not if your one of the ones you pay me to do that for them

[tx 3 putt 76386]

farmers love them some socialism, for themselves and not for anyone else 

[Al_4_ISU 12409]

12 hours ago, washparkhorn said:

One needs mad financial skills to be a successful modern farmer. 

Lotta truth to that.

23 hours ago, Royalfan5 said:

Weather variance makes Kansas an interesting place to farm because the ground is priced for the shitty weather years, but it's pretty much good enough dirt that the good years can blow away anyone else on returns. Of course, you're socially obligated to grow wheat, milo, and have cattle though. 

What are average land ownership costs in Kansas?

[Royalfan5 2348]

46 minutes ago, Al_4_ISU said:

Lotta truth to that.

What are average land ownership costs in Kansas?

Varies widely, but top end irrigated ground that can push 280 bu corn, is still below 250 cash rent for the most part. You have better property taxes than neighboring states too. You get out west and your cash rent is in the 30-50 per acre range, and irrigated is still in the low 100's for stuff that will push 200 bpa. 

[Al_4_ISU 12409]

11 minutes ago, Royalfan5 said:

Varies widely, but top end irrigated ground that can push 280 bu corn, is still below 250 cash rent for the most part. You have better property taxes than neighboring states too. You get out west and your cash rent is in the 30-50 per acre range, and irrigated is still in the low 100's for stuff that will push 200 bpa. 

You're making this sound appealing.

$250 would be on the lower end around here, but there are folks paying that.  Back in 2012 there were guys chucking around $500.  You still see big hog integrators that need land to spread manure pay over $350.  This current swing + last year's subsidies have absolutely pushed our rent averages up.

Actual land sales tend to hang in anywhere from $8500-$12,000 per acre up here consistently.  Depends on ground quality and how many swinging dicks want the farm.

[Royalfan5 2348]

19 minutes ago, Al_4_ISU said:

You're making this sound appealing.

$250 would be on the lower end around here, but there are folks paying that.  Back in 2012 there were guys chucking around $500.  You still see big hog integrators that need land to spread manure pay over $350.  This current swing + last year's subsidies have absolutely pushed our rent averages up.

Actual land sales tend to hang in anywhere from $8500-$12,000 per acre up here consistently.  Depends on ground quality and how many swinging dicks want the farm.

NE Kansas is possibly the best spot to farm because you still get the Kansas discount, but your pretty close to Iowa yields and rains, without Nebraska's property tax, +right on the river for export along with access to multiple soybean crushers and ethanol plants, + specialty corn buyers if you are so inclined. 

[Al_4_ISU 12409]

8 minutes ago, Royalfan5 said:

NE Kansas is possibly the best spot to farm because you still get the Kansas discount, but your pretty close to Iowa yields and rains, without Nebraska's property tax, +right on the river for export along with access to multiple soybean crushers and ethanol plants, + specialty corn buyers if you are so inclined. 

Looking at a national precip map, it appears that there's a sliver on the west edge of KC that actually gets more rain than we do, annually.  I'm in the 30-35" annual precip part of Iowa.

Granted they probably get a lot of that when we're getting snow and it doesn't help, but with their longer growing season I could see there being serious potential.

Edited March 17, 2021 by Al_4_ISU

[Celery Man 20886]

Is there a farmer thread somewhere on surly? This is an interesting discussion.