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    Farming help and opinions needed

    Just got to thinking other day.... My grandpa farmed for most of his life. He passed away 2 years ago and one thing I wish that I had asked him about was how he farmed. (Corn & soybeans) I grew up only a few miles away in the neighboring town and got to "help" with the harvest sometimes...usually just riding in the tractor or the wagon.


    The land has been rented for quite a number of years to a family friend. I have no idea what he pays or any of that because it's really not any of my business. I don't own the land etc. But part of me would like to someday have a part in farming that land..if not just to pay homage to my grandpa. But what I was wondering was what would a fair deal be if lets say I did own the land. I'm not talking renting...like a deal where you split the profits. I provided land..the "renter" would provide the equipment. Should the owner pay for the seed too? This is all just a hypothetical but wondering how much it's worth and what would be a fair deal or would it not be worth it to the farmer. We aren't talking a ton of land here either...only 150 acres or so. What would an "average" acre of corn or soybeans net in profit in eastern central Iowa? Again very general and I know there are a ton of variables.

    Anyway just curious as I really know nothing about it and is something I'd kind of like to learn a little more about. Thanks in advance...and feel free to brainstorm any partnerships that you would see as mutually beneficial.



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    Re: Farming help and opinions needed

    I was a victim of a series of accidents, as are we all.

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    Re: Farming help and opinions needed

    At 50% down you'll need somewhere near $600K I'm guessing to buy. Unless you buy on installment of course.



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    Re: Farming help and opinions needed

    The info I am providing may not be completely current for your area.

    A 50/50 crop share arrangement usually has both sharing the expenses. (seed, fertilizer, chemical) You provide the land and the tenant supplies the labor/equipment and you split the grain at harvest.

    There are other options. The tenant can take all expenses and you get a portion of the harvest. Say a 67/33. With the landlord getting the 1/3

    Or you can cash rent the ground but you lose out on the tax benefits.


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    Re: Farming help and opinions needed

    It has changed quite a bit recently but a 50/50 crop share used to be the popular route in terms of what you are thinking. IMO, it's the fairest way. Basically, you provide land, the tenant provides equipment, you split the inputs and you split the crop 50/50.

    Just realize, under that scenario you would still be looking at about $300 to put a crop in doing things the right way. Of course that number can vary a little but I don't know your specifics. If you were to own the land, from a landlords point of view, today, cash rent would be a better option. There is going to be a lot of risk whenever you invest in a crop and your risk is not diversified. You are relying on that one piece of land to make itself.


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    Re: Farming help and opinions needed

    What your talking about doing is commonly know as a crop share agreement. I say commonly known, yet it's probably not used as much today as a straight cash rent agreement.

    It can be set up many different ways, 50/50 input split with farmer providing equipment and labor is probably the most common.

    Here is a link to a study done by ISU that may answer some of your questions.
    http://www.extension.iastate.edu/agd.../pdf/c2-30.pdf



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    Re: Farming help and opinions needed

    Another thing you could look at is having someone custom farm it. You make all the decisions, purchases, selling, etc, they provide labor and equipment and you pay them a flat fee for their work over the year.

    That would get you more hands on management if that was what you are looking for.



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    Re: Farming help and opinions needed

    Quote Originally Posted by Tre4ISU View Post
    It has changed quite a bit recently but a 50/50 crop share used to be the popular route in terms of what you are thinking. IMO, it's the fairest way. Basically, you provide land, the tenant provides equipment, you split the inputs and you split the crop 50/50.

    Just realize, under that scenario you would still be looking at about $300 to put a crop in doing things the right way. Of course that number can vary a little but I don't know your specifics. If you were to own the land, from a landlords point of view, today, cash rent would be a better option. There is going to be a lot of risk whenever you invest in a crop and your risk is not diversified. You are relying on that one piece of land to make itself.
    I guess I don't see how it would be that expensive on a 50/50 where you split inputs.

    Soybeans $90/acre/2=$45
    Seed-$60/acre + Spray-$30/acre=$90/2=$45 then add in $10 for crop insurance.

    Corn $335/acre/2=$167.5
    Seed-$115/acre + N-$90/acre + P&K-$100/acre + Spraying-$30/acre=$335/2=$167.5 then add in $15 for crop insurance. And add in some additional considerations for side dressing or applying additional dry in the spring.

    For N I took 225#'s/acre at $800/ton

    Wouldn't the rest of the cost would be incurred by the farmer?

    Of course the largest cost consideration would be for the land.



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    Re: Farming help and opinions needed

    How much free time do you have this winter? Try and go to a couple of ISU Extension
    meeting this winter. Go sit down and ask the guy who farms your family's farm questions. Seed, chemicals,DO NOT LET HIM USE ROUND UP herbicide alone. Use 2-3 different chemicals, or weeds will grow wild. Fertilizer, insurance, tillage and more. Putting the crop in the ground is not real hard, SELLING your crop makes or breakes you. Where you sell makes a BIG difference, as does WHEN you sell.
    I farm 220 acres, half corn and half soybeans. The value of my 2012 crop that I will plant in April of 2012 has gone down in value, what I will get paid for my crop after harvest in October of 2012 , about $25,000. My 2011 crop got hauled to town this week, I sold part of the corn for $5.05/bu and some for $7.22/ bu. $1.17 on 20,000 bu is alot of money at my place.
    Sorry for getting LONG. This is a small START. This is like askinf PR about football.
    ASK any time.



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    Re: Farming help and opinions needed

    Quote Originally Posted by AllBig12Drinker View Post
    I guess I don't see how it would be that expensive on a 50/50 where you split inputs.

    Soybeans $90/acre/2=$45
    Seed-$60/acre + Spray-$30/acre=$90/2=$45 then add in $10 for crop insurance.

    Corn $335/acre/2=$167.5
    Seed-$115/acre + N-$90/acre + P&K-$100/acre + Spraying-$30/acre=$335/2=$167.5 then add in $15 for crop insurance. And add in some additional considerations for side dressing or applying additional dry in the spring.

    For N I took 225#'s/acre at $800/ton

    Wouldn't the rest of the cost would be incurred by the farmer?

    Of course the largest cost consideration would be for the land.
    Sorry, I wasn't clear or I missed a step. That was the total cost but then you have taxes and such too.


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    Re: Farming help and opinions needed

    every farmer who rents lands worse nightmare, the family member of the landlords want to take over the land! ahhhhhhhh!

    Just kidden op, good luck.



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    Re: Farming help and opinions needed

    Quote Originally Posted by R1975P View Post
    How much free time do you have this winter? Try and go to a couple of ISU Extension
    meeting this winter. Go sit down and ask the guy who farms your family's farm questions. Seed, chemicals,DO NOT LET HIM USE ROUND UP herbicide alone. Use 2-3 different chemicals, or weeds will grow wild. Fertilizer, insurance, tillage and more. Putting the crop in the ground is not real hard, SELLING your crop makes or breakes you. Where you sell makes a BIG difference, as does WHEN you sell.
    I farm 220 acres, half corn and half soybeans. The value of my 2012 crop that I will plant in April of 2012 has gone down in value, what I will get paid for my crop after harvest in October of 2012 , about $25,000. My 2011 crop got hauled to town this week, I sold part of the corn for $5.05/bu and some for $7.22/ bu. $1.17 on 20,000 bu is alot of money at my place.
    Sorry for getting LONG. This is a small START. This is like askinf PR about football.
    ASK any time.
    I use Round-up alone and never have any problems. This super weed stuff is a myth.



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    Re: Farming help and opinions needed

    Quote Originally Posted by rebecacy View Post
    I use Round-up alone and never have any problems. This super weed stuff is a myth.
    Go tell that to the people in the South Mr. All Knowing. Round-up alone was not the problem, it was the misuse but the problem does still exist.

    [ame=http://www.youtube.com/watch?v=B-cka5s4AqE]Super Weed Can't Be Killed - YouTube[/ame]


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    Re: Farming help and opinions needed

    Quote Originally Posted by rebecacy View Post
    I use Round-up alone and never have any problems. This super weed stuff is a myth.
    I know you worked at Monsanto but you must acknowledge your former employer is working their *** off to try and get back in front of the problem.


    Last edited by bos; 12-20-2011 at 05:10 PM. Reason: personal attack


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    Re: Farming help and opinions needed

    Quote Originally Posted by rebecacy View Post
    I use Round-up alone and never have any problems. This super weed stuff is a myth.
    I forgot you worked at Monsanto. Monsanto said the same thing you said 2 years ago. What are they saying now? Why are they adding incentives for more products not manufactured by Monsanto?

    Sorry for the derailing.


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