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re: Soybean Field land Rental $$?
Posted on 4/23/12 at 11:03 pm to TheHiddenFlask
Posted on 4/23/12 at 11:03 pm to TheHiddenFlask
I didn't know 10 acres was so little. I guess it's a hassle to move equipment and all that.
Makes sense about the percentage. Helps hedge risks.
Makes sense about the percentage. Helps hedge risks.
Posted on 4/23/12 at 11:19 pm to greenhead11
quote:
I didn't know 10 acres was so little. I guess it's a hassle to move equipment and all that.
Yeah. It depends on the crop, but 10 is way too small for anyone to pick up for farming, unless they are already farming next door (and even at that, I don't know if it would be worth it).
The problem is: You have to take time to segment off both costs and production. An average rice farmer farms around 500-1000 acres where I am from. that's 50-100 10 acre plots. If you move up to wheat, it's nothing to have 2000-3000 acres. I would imagine that they wouldn't want to deal with anything less than a couple hundred acres.
A lot smaller lot is acceptable with cash rent instead of percentage of crops because you don't have to keep track of everything, but it's probably not worth someone moving their equipment any significant distance for 10 acres. It would take less than an hour to harvest, and would probably kill a couple of hours in transfer time during harvest if moving more than 3-4 miles.
ETA: Soybeans are more like wheat in the amount of effort it takes, so it's more reasonable to use them for a reference group.
ETA 2: I agree with the other guy. 20% of crops is standard in SWLA rice farming.
This post was edited on 4/23/12 at 11:27 pm
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