Posted by IaGary on June 16, 2012 at 06:34:41 from (108.160.229.48):
Someone posted after me when I mention guys paying $450 cash rent. Wondering if they are nuts. Here are the figures we work with here in eastern Iowa on a per acre basis.
Seed $100
Fert $250
Herb $50
Machinery $125
Fuel $25
Rent $450
Total $1000
At the time most guys were agreeing to these leases corn was $6.00 a bushel and this land will yield 200 bushel per acre. So that would equate to $1200 per acre income or $200 an acre income.
I don't pay $450 an acre rent and won't unless corn hits $7.00 a bushel and my landlords demand it.
But that's how these guys are figuring it in eastern Iowa and places beyond.
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