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Posted on 6/19/17 at 6:31 pm to DownshiftAndFloorIt
Southern Ag in Mccomb had a really good YFR loan few years ago. David Shivers was the lender who stopped by to see me. It was super easy to get approved and had a long lenient payback.
Actually the cattle business has the lowest entry cost of all I know of. Rent some pasture, buy a 50 hp tractor set of forks and clipper, squeeze chute, wire, posts, couple panels, and start getting stepped and shat on.
Actually the cattle business has the lowest entry cost of all I know of. Rent some pasture, buy a 50 hp tractor set of forks and clipper, squeeze chute, wire, posts, couple panels, and start getting stepped and shat on.
Posted on 6/19/17 at 7:02 pm to Sparetime
How much does a cattle lease run in halls area?
Posted on 6/19/17 at 7:22 pm to stewie
Not a farmer but just bought 130 acres that has around 100 acres of recently thinned planted pine. So I guess I could be a tree farmer if I wanted to and I just bought a 47hp kubota to complete the weekend warrior get up
Posted on 6/19/17 at 7:45 pm to SportTiger1
quote:
why is land so astronomical?
Tell me were there are making more at?
I have a couple pecan orchids. Used to run dam cows, screw that and even more now that prices are dropping out the bottom again.
And yes, it's going to be another shitty year in my area for pecans. That is going to be three back to back.
Posted on 6/19/17 at 8:20 pm to texag7
quote:
Do you know anyone that farms organic corn?
No
quote:
I've been looking into doing this
keep looking.
Your expenses will be roughly the same as conventional.
But your yield will be 1/3 to 1/2.
So instead of making 200 bushels of corn per irrigated acre, you make 85. Instead of selling it for $4 per bushel you sell it for $6.
So you gross $500 per acre instead of $800, but with more work and the same out of pocket cost.
There's a reason people aren't lining up to do it.
Posted on 6/19/17 at 8:21 pm to No Colors
Not too many gimmicks in agriculture.
Posted on 6/19/17 at 8:24 pm to jimbeam
I farm in Mer Rouge. It's not something anyone wants to be a part of these days..
Posted on 6/19/17 at 8:32 pm to SportTiger1
quote:
My question is, and i believe every word you say here...but it's such an iffy bidness, why is land so astronomical?
The correlation between Ag land prices and the profitability of farming is not as strong as you would think. It has more to do with yields in other RE catagories.
If commercial office and retail has a 6% yield and a 2% annual cash maintenance value, then farm land yields can get pushed to 3-4%. So it has been contra indicated to other financial instruments. When bond yields went to 1% everyone was looking for yield. Let's say farm land was renting for $250 per acre and was worth $3000 per acre. Suddenly that 8% yield looks fantastic, and institutions bid the land price up to $6000 per acre. The rent still stays at $250 even though the land price has doubled.
That doubling had nothing to do with the price of corn or the profitability of the operator. Or even his ability to pay higher rent. But what will hammer his arse is when John Hancock (which owns his farm in their portfolio) starts seeing cyclically higher yield opportunities in conventional RE plays. And the 3-4% they're getting off their farmland investment suddenly doesn't look that good. So to keep pace, they demand $400 rent.
Which, again, has nothing to do with the farmer's ability to pay that rent. It has to do with M2 money supply and the yield cycle. Some douchebag in Boston has to justify his portfolio yield in the face of higher interest rates and needs $400 for the same piece of dirt that he was happy to get $250 for in 2010.
And don't get me started on the seed companies. They find a trait that they think will yield the farmer $50 more per acre, and they will try to charge you $35 for it. And then, with a straight face, they will explain to you what a great fricking deal that is for the you.
It's amazing there aren't more of those guys buried in irrigation ditches all over the world.
Posted on 6/19/17 at 8:32 pm to Itismemc
Yep I farm trees if that counts.
Posted on 6/19/17 at 8:37 pm to drakeT1217
You know a guy by the name of Daniels?
Posted on 6/19/17 at 8:37 pm to WPsportsman
My dad has some greenhouses and grows tomatoes, peppers, lettuce, cucumbers, some herbs, and I'm sure some other things I'm not thinking of.
Posted on 6/19/17 at 8:39 pm to No Colors
quote:
Your expenses will be roughly the same as conventional.
How so? I'm guessing you would not be using herbicides or pesticides, so you could go without owning a big spraying rig.
Also non-GMO seed corn is cheaper. Seems like it would cost considerably less per acre for production.
Posted on 6/19/17 at 8:42 pm to texag7
You just spray "organic" pesticides.
Posted on 6/19/17 at 8:46 pm to texag7
quote:
I'm guessing you would not be using herbicides or pesticides
Uhh...there's a reason people use pesticides. Because they are a great value in the production process. When you drop them, you don't just drop them. You have to replace them with something that costs more but isn't as effective.
For instance, to "burn down" weeds preplant, you will have to LITERALLY burn them down. Like, with a propane torch rig. It is slow and expensive. Versus glyphosate herbicide at $12 per acre. And, you weeds are gonna come back faster and stronger than with herbicides. So let's look at it again:
Spend more money
Spend more time
Get worse results
Yield less grain
All of that does not come close to the benefit of selling what you do make for, say, 50% more.
Posted on 6/19/17 at 9:08 pm to No Colors
Damn No Colors. You making me want to go get me a John Deere hat and get to work.
Posted on 6/19/17 at 9:11 pm to tigerfoot
If you have a couple million dollars to start you might be a millionaire after a few years!
Posted on 6/19/17 at 9:11 pm to No Colors
Are organic yields really that low? I read a USDA yield report and the average was only 41 bushels less than conventional
Posted on 6/19/17 at 9:11 pm to stewie
Whitetail deer and getting into exotics
Posted on 6/19/17 at 9:12 pm to jimbeam
No better way to make a millionaire out of a billionaire 
I have to get land that I can have cows on and maybe shoot a deer or two on.
I have to get land that I can have cows on and maybe shoot a deer or two on.
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