re: Sugarcane Farmland Lease Rate?

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Cane economics must be better than rice since more rice acres have been supposedly converted to cane verses cane to rice

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yes. I freakin HATE cane and it's now encroached next to our farm. Rice and corn is really down right now. Soybeans might be able to make some money this year but I bet the acreage goes up since eveyone is thinking this. We sold our rice this for well below break even price. Whatcha gonna do?

My dads the one with skin in the game, but believe me were pretty lean

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Get lean(er), hopefully you've already reduced any LT debt

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It blows my mind the number of people who failed to do this between 2008-14. These people are about to get their arse handed to them in '17 if they didn't already in '16. That's if we have an average yielding year. If it's a bad year, it will be a full blown crisis.

Happens all the time, short sighted. They think the good times will last forever. I know some baws that worked themselves into a deeeepppp hole. New trucks for write offs and shite. Just dumb IMO. #highrollers

20% of the harvest is share rent.
$100-150/acre is cash rent.

That's your typical Lousiana farm rent.

Its one of the two.

Our land is all lasered so it is really succeptible to floods. We're seriously considering putting a few hundred acres of beans on cane rows this year. Can irrigate during a drought and keep em dry in a flood. Price is right. Idk if dad will pull trigger or not.

Shot a good bit of specs this year. True story, had almost no ducks until yesterday. Had a thousand or so teal and ringnecks show up. How about that.

Yeah, well how many you kill?

Just stumbled on this thread, my family is looking to purchase a 250 acre farm near Lettsworth and building a house on the lot next to the farm. What can we roughly expect as far as lease rates go and yearly income? According to AcreValue, the farm has been predominantly close to 60% soybeans yearly and about 10% of other crops; corn, etc. Like others have said we would be looking to lock in a long term lease at a fair price in order to have the farmer take care of and maintain the land.

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What can we roughly expect as far as lease rates go and yearly income?

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You'd have two lease options, cash rent and percentage share rent.

I'm not sure about a cash rent basis in that area but you would have less risk because you are getting rent up front but you won't have as high of a ceiling (in theory).
If you have a percentage share and the prices go up and yield is great, you make more $$ but there is a lower floor.


Example.

Cash rent = whatever $$ is negotiated, no matter what happens.

Percentage share of 20%. Say it's a great year where the farmer makes 70 bu./acre soybeans and the price is $11.50 a bushel.
That's $805 X .2 = $161 an acre for the land owner or $40,250 over 250 acres.

On the flip side, say the farmer makes 35 bu an acre and the price is $8.50. The land owner takes only $59.50 an acre or $14,875.

Keep in mind, the state average sits between 54-56 bushels an acre for soybeans and the price has varied from $8.30 - $10.80 the past few years.


We farm in the more southern river parishes and in predominantly sugarcane country. Every land owner I know of runs a 20% percentage share lease on sugarcane and soybeans.
However cash rent dominates the landscape in the Midwest and northern LA.

As someone mentioned, LSU will have a count agent in the area or an FSA (Farm Service Agency) agent. They will know the lay of the land and what is common for rent in that area.

Moreover, ag leases can be as simply and as complicated as the two sides want them to be.
Most people have a word of mouth lease, which is dangerous for both parties but easy to enter in and withdraw.