Tillable rental rates

[Hoytvectrix]

Has anyone here used CashRent for shopping for a cash renter? I listened to this company on a podcast today and it sounds interesting. It is basically a way to auction your tillable to farmers for bid quotes on cash renting. From their word of mouth so take it for what it's worth, but apparently most people see a 40% increase in rental rates. Within the podcast episode they talk about the pitfalls of self-reported survey data that is compiled by university Extension personnel. It is a great podcast in general, but also this particular episode is great for talking about trends in farming and how that is affecting recreational land prices.

I know most people have a relationship with their farmers because they are neighbors or whatever, but I think it might be worth checking out. https://commonground.io/app/cashrentstimate

I went through and got the free estimate. It came out to about $100 more per acre than we are currently getting. I'm not jumping ship by any means, but I will definitely be looking at this more closely and talking with some of our neighbors.

 

[Wind Gypsy]

I listened to that podcast as well, interesting conversation. I'd definitely consider it if I had any worthwhile tillable.

It felt like a sales pitch but that's not a surprise. I'm not opposed to what they are doing but how they dismissed the idea that any farmers would be hurt by rising rent costs felt intellectually dishonest.

 

[Hoytvectrix]

I listened to that podcast as well, interesting conversation. I'd definitely consider it if I had any worthwhile tillable.

It felt like a sales pitch but that's not a surprise. I'm not opposed to what they are doing but how they dismissed the idea that any farmers would be hurt by rising rent costs felt intellectually dishonest.

Definitely dishonest on their part to gloss over that so flippantly. Their audience is typically not farmers though. In a roundabout way, farmers are eventually helped by rising land prices. In the short-term an extra $50-100 per acre is huge for most farmers. The county survey rental rate data is incredibly important for many reasons. I am happy to see there being a more open way for determining market rates in the meantime.

For what it is worth, I went through and did the estimate on their website and got a call about 15 minutes after submitting the forms and getting the estimate. The person wasn't pushy but just seeing if I had any questions. It did kind of turn me off how quickly they reach out. Makes me feel like it will be pushy at some point.

 

[Howboutthemdawgs]

So prior to three posts ago I’ve never heard of this service, but I’m assuming they are counting on farmers to sign up and bid? Is that something you see farmers actually doing? I would be shocked if the ones around me did that

 

[Hoytvectrix]

So prior to three posts ago I’ve never heard of this service, but I’m assuming they are counting on farmers to sign up and bid? Is that something you see farmers actually doing? I would be shocked if the ones around me did that

There are definitely people looking for more acres to farm. It all depends on your area. They said that the average land owner receives 12 bids. I am not sure if that is 2 people bidding against each other or 12 unique individuals. I would assume it is the former, but if they are getting a lot of people from Indiana, Illinois, and Iowa, I could see a couple of farmers in a county placing a bid. My Dad and his siblings owned some primo land in north central IA and they had new people reaching out to them every fall. The renters they used were coming in from 60 miles away but were already farming some neighboring land.

In our part of the county in northern MO, there is definitely starting to be more competition, but nearly everyone is paying around the same rate. I'm pretty skeptical of the service and was hoping someone on here has used it or knows someone that has. Like I said, I put in for an estimate and it was more than $100 per acre more than what we are getting currently.

 

[Wind Gypsy]

Definitely dishonest on their part to gloss over that so flippantly. Their audience is typically not farmers though. In a roundabout way, farmers are eventually helped by rising land prices. In the short-term an extra $50-100 per acre is huge for most farmers. The county survey rental rate data is incredibly important for many reasons. I am happy to see there being a more open way for determining market rates in the meantime.

I just assumed there were a number of farmers out there who relied on a strong majority of rented acres and had a hard time seeing how they'd be benefitted by increased land/rent costs due to the market becoming more efficient and capitalized on.

 

[Howboutthemdawgs]

Obviously this fluctuates daily/monthly/yearly on what a farmer makes on a field but I was talking to my guy this weekend. He had roughly $10k in seed and fertilizer thus far on 60 acres. Add in herbicide, diesel, labor for prep, planting and harvest, my fee… he has to be between $20-$30k in my one field. If someone could potentially double my rent there is some really good money to made in row cropping right now.

 

[Wind Gypsy]

Obviously this fluctuates daily/monthly/yearly on what a farmer makes on a field but I was talking to my guy this weekend. He had roughly $10k in seed and fertilizer thus far on 60 acres. Add in herbicide, diesel, labor for prep, planting and harvest, my fee… he has to be between $20-$30k in my one field. If someone could potentially double my rent there is some really good money to made in row cropping right now.

Google says avg Kentucky corn yield is 156 BU/AC and soybeans are 51 BU/AC. So if taking statewide averages and today's prices, he's looking at $59,436 for corn and $43,911 for soybeans on your 60 acres.

 

[Howboutthemdawgs]

Google says avg Kentucky corn yield is 156 BU/AC and soybeans are 51 BU/AC. So if taking statewide averages and today's prices, he's looking at $59,436 for corn and $43,911 for soybeans on your 60 acres.

Ok so i was the last of 800 acres of corn he was getting in, he had 300 acres of early beans, then harvest 300 acres of wheat and plant those in late beans…so as long as he doesn’t royally screw up or get screwed by the weather he’s sitting pretty for the year

 

[Brian662]

I plugged my property into that website and it came back really close to the rent I'm receiving, so I guess I'm not doing too bad. I also don't have much left for tillable so my few small fields aren't very desirable to anyone coming a great distance.