Combines Question on cash rent

In my area rents are from 125-205_acre.Some people have to use pretty funny pencils to show a profit.

I know here in north central Illinois there are farmers paying over 200 an acre, I don't know how they pencil that out, they must have a sharper pencil than I do!

Just curious...........if land is renting for over $200_per acre, what in heck does it sell forIJ Were I'm from, some cheap land sells for $200_acre Canadian....about $120_acre U.S. funds. Better land that can grow 50 bushel dryland wheat...about $650_acre Can.....or $375_acre U.S.

Average land goes for22-2800_acre,real good from32-4000_acre.It's nuts.

I know one thing, their pencil is going to break because you simply can't pay that kind of price to RENT ground. It would be a different story if the farmer had bought the ground and had a payment of that much per acre. Just think about it.....$200 per acre for rent, $50 per acre for fertilizer, $30 for chemicals, $40 per acre for seed, $20 per acre for fuel, and equipment. All this added up and still you havent accounted for your labor and hired hand(s),as well as the added cost to the equipment for the new stuff. This could be as high as 40 per acre. It just doesn't work out to where they are making enough money to pay that kind of rent, plus make money on top of that. So unless they have someone furnishing them all their inputs for free or at a very discounted rate...you can take it from me that they are crazy.

Gentlemen what you are seeing is the subsidies being capitalized into the land values in the US, both in land rent and land values. Its a vicous cycle and the farmers arent usually the ones that end up rich off them.

Can anyone tell me why you would want buy ground that you have to rob off of other farms to pay for it. I guess I just getting old.

You no I think I will, this spring Drive around and watch these farmers paying that cash rent, and maybe I can see what I'm doing wrongIJ

Amen! I have been saying this for years. Just because the farmer gets the 1099 for the government payments does not mean he is the one who winds up with it. It's my opinion that the landlords actually get most of this money. I know there are those who disagree, but I think these outrageous rents are part of the proof that the farmer doesn't keep most of the it.

Here in Central Texas, our the land we cash lease ranges from $15 to $60 an acre. Of course that is dryland, but we still have the potential to make 120+bu_ acre corn. And we are struggling, you guys spending $200 must be making 500+bu corn every year. lOl