I went through the 70 and 80 learn my lesson see a lot of farmer going broke or working for nothing why buy a job.
Landlords are not intouch with the actual cost of putting the crop in, machinery cost and the amount of risk that the farmer takes. Landlords see high prices for grain and think we are making lots of money.
from 150 for very poor ground to 450 for very good ground. the butler co. farm east of allison ia. just went for 587 which is crazy
I saw a large spike last year some because of bidding against other farmers, but the largest to blame is our government. CRP rates are out of control Thank you NRCS!
Land owners that have never farmed before see good crop prices but have no idea what the imput costs are or what it takes mentally and physically to grow a crop.
I'm a land owner/investor, basing '13 rents on 5-6% of market land value and 30% of average gross revenue of crops raised on land I own in 2012, I plan to raise rents 15-20%, land is in northern Red River Valley in ND and MN
The prices have been great last two years,this year if you are where their was rain super prices, no reason to drop rent,will hold for 2013
There are running adds in the local paper that offer 300-350/acre. These adds are moving all rents to that level. Three farms have sold in last four months for $12,000/acre with no special building or structures. West central, Ohio.
$450-$550 will capture most rental rates for good quality farm ground in Northern, IA and Southern, MN that are put on the open market. There are plenty of negotiated deals well below market rates but these are slowly going away as the landlords figure out the true land rent market price. There are many good tenants out there that will and can pay this rent and make it work.
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