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Re: How much per acre can....
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Posted by James22 on August 06, 2007 at 10:27:35 from (207.179.221.32):
In Reply to: Re: How much per acre can.... posted by georgeky on August 06, 2007 at 07:44:31:
It requires around $325/acre to grow corn if you don't try to expense all new machinery. With a rent of $200/acre it still leaves $75/acre. Even with only 400 acres, which is really only a part time job in the midwest, it would give $30,000. This income level from only a "part-time" job, would compare to many full-time non-union factory jobs. Further more, a mid-sized farmer might bring to the table an investment approaching $500K. A midwest landowner could easily bring to the table an investment in the millions. The farmer having the lower investment takes the additional risk. Although hydroponics does exist, it would be real tough to farm without land. Machinery, fertilizer and seed have gone up considerably and the farmer continues to pay, so why not land rent? Locally at least they recognise this issue, are willing to pay for this privilege and with rare exception they are prospering. I have a tenant which pays $150/acre for about 500 acres, The yield it now appears will be above 225 bu/acre. He contracted 180 bu/acre at $3.75/bu. Figuring the additional 45 bu at $3.00/bu, and also remember he receives the FSA farm payment which is not be considered, he is going to make $142.5K from farming my ground. He rents an additional 2000 acres and will realize a similar income from those holdings. Therefore I'm anticipating a $30-40 acre rent increase next year.
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