Posted by JD Seller on June 22, 2018 at 10:39:41 from (173.215.45.26):
We actually have two farms that we are going to seed down this year to hay. With grain prices falling and the hay market raising some of the marginal grain ground can actually make more clear profit in hay. These farms are cash rented but the landowners are retired farmers and they both like the idea of their land going back to hay. We have five year contracts on both of them too. So the cost of seeding them down can be recouped over time.
The long term plan is for these farms to be all hay until the stands start to diminish. Then we plan to put contour strips back in these fields. They were torn out by prior renters. Erosion is an issue on the steeper ground. We will put in 120 foot side strips. That works well for hay, soybeans and corn. Then we will do a three crop rotation.
If hay prices stay dissent and grain prices stay lower, we will do this to more land. We can lower the cost of production this way but we can not pay the crazy cash rents with hay in the mix. We have seen some reduction is rents on our ground. 3 farms actually went back to share agreements. It helps that a large percentage of the landlords we deal with are retired farmers. They usually understand things better than non farming landlords.
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