Tillable rental rates

[Wind Gypsy]

I'm hoping to look at a 40 tomorrow that is over half tillable currently in row crops. It has a house (which I'd rent) and a large pole shed (which i may use to rent storage space).

How does one get an idea of what rental rates are currently for row crops? Trying to crunch #'s to see if this deal would be as good as I hope it would..

 

[Howboutthemdawgs]

I’ve seen 130-250 around me I guess just depending on the dirt.

 

[Hoytvectrix]

Check with the local USDA. Otherwise, just call and ask some farmers. In Northeast Missouri, I think the going rates are around $250-275/acre for bottom ground.

 

[MRBB]

you can also try calling your local AG store in the area the property is, rates for rental lands vary a lot pending location soil type and yields in area,
your local soil conservation dept might also be able to get you some folks to ask, if they didn;t know current rates in the area too, plus they can tell you what the soil is on the property as well

 

[FarmerDan]

Minnesota? This will get you an idea...
https://extension.umn.edu/farmland-rent-and-economics/cropland-rental-rates

 

[Wind Gypsy]

Minnesota? This will get you an idea...
https://extension.umn.edu/farmland-rent-and-economics/cropland-rental-rates

That's where google led me and $56/acre is nothin to be excited about!

 

[Foggy47]

What does the current owner get for rental? Soil and comparable local rental market is going to be largely the factors. Southern MN may rent for $600 an acre or more on premium ground.....and sandy stuff your lucky to find a renter in some areas.....tho there has been lots of folks looking for more land in most areas. Small parcels like that are hard to rent to anyone but the neighbors....who wants to haul machinery for 20 acres?

 

[bwoods11]

I’d have to know the county and soil rating to give you a rough rental rate …

 

[buckdeer1]

We do 2/3 to farmer and 1/3 for landowner and then same on fertilizer.Not much cash rent in my part of Kansas.USDA office in the county the farm is will be best bet and whoever is farming it may be the easiest.

 

[Wind Gypsy]

Thanks folks. As I looked into it more it doesnt seem like something that will move the needle much on the overall financial side of this deal.

 

[Brian662]

You could call the local NRCS office and ask them about the soil quality and what CRP would pay per acre, that should get you in the ballpark for what a farmer would pay.

In SE MN I get $200/acre on both of my farms from nearby neighboring farmers.

 

[Foggy47]

Also could be big variations if you have hog or cattle operations near by. Sometimes they need the land for manure purposes.

 

[b116757]

My area row crop rent can run from $70-130 an acre. I totally agree the rent price barely factors into covering payments particularly with current property prices. I’ve got a 40 not far from the farm they want $194,000 for, it’s in native grass prairie not planted but original prairie. Rent on prairie grass for hay runs around $40 an acre and it would hurt my soul to tear it up for row crop but even if I did tear it up it would be drop in the bucket towards the payments. If it touched my property I’d probably buy it but since it doesn’t I’m way way more reluctant to purchase it at that price. Oh and there isn’t a single tree on the 40 so hunting value zero.

 

[Wind Gypsy]

40541 Johnson St NE, Braham, MN 55006 | realtor.com®

View 42 photos of this 3 bed, 1 bath, 2016 sqft. single family home located at 40541 Johnson St NE, Braham, MN 55006 on sale now for $459900.

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This is the spot. It’s eating at me a bit that we haven’t made an offer but it would just be another thing sucking my time away from family which is already a struggle.

It’s about 20 minutes from our current 40 and 70 minutes from home.

 

[Hoytvectrix]

I'm really surprised the rental rates are comparatively as high as they are in Northeast Missouri (~$250/acre). Makes me feel better about what we are getting. As a point of reference, the Northeast Missouri land is going for around 4500/acre these days for a rental rate of $250/acre. My dad owns some land in North Central Iowa that is paying $300/acre for land that sells for around $13K/acre.

 

[Bill]

We do 2/3 to farmer and 1/3 for landowner and then same on fertilizer.Not much cash rent in my part of Kansas.USDA office in the county the farm is will be best bet and whoever is farming it may be the easiest.

That’s how I do it with one piece. I get 1/3 of the crop $ when it comes off.

 

[BuckSutherland]

40541 Johnson St NE, Braham, MN 55006 | realtor.com®

View 42 photos of this 3 bed, 1 bath, 2016 sqft. single family home located at 40541 Johnson St NE, Braham, MN 55006 on sale now for $459900.

www.realtor.com

This is the spot. It’s eating at me a bit that we haven’t made an offer but it would just be another thing sucking my time away from family which is already a struggle.

It’s about 20 minutes from our current 40 and 70 minutes from home.

I would expect you can rent that piece for 175-200 an acre in the current environment. $150 would likely be the basement. Could maybe get $225. Probably produces 175bu corn most years, 200bu+ on a good year. Might have struggled to make 30 bu beans last year. I think $250 rent would be obscene for that area.

 

[Brian662]

I would expect you can rent that piece for 175-200 an acre in the current environment. $150 would likely be the basement. Could maybe get $225. Probably produces 175bu corn most years, 200bu+ on a good year. Might have struggled to make 30 bu beans last year. I think $250 rent would be obscene for that area.


View attachment 43092View attachment 43093

Unless I'm reading your map wrong, that area had 110 or 120 bushel corn last year. Any farmer who paid $200 or $225/acre lost their ass in that area.

 

[buckdeer1]

Yes thats what is done here 95% of the time and cash rent is the 5%,Cash rent here is around 100.00 per acre.

 

[Wind Gypsy]

Unless I'm reading your map wrong, that area had 110 or 120 bushel corn last year. Any farmer who paid $200 or $225/acre lost their ass in that area.

For discussion purposes, here's the USDA soil survey info on the bigger field.



Doesn't look like we're going to move on this one. It would have a been a neat one to have and let house rent pay the mortgage on. I figured it would come out pretty close to a wash in total cash flow depending on if there any significant repairs or if the house was rented 100%. Just hard to lay out the time commitment. Limited hunting options without some additional work but could have had a couple stand sites for certain conditions.