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Started By
Message
re: OB Farmers
Posted on 2/26/19 at 8:33 pm to Boat Motor Bandit
Posted on 2/26/19 at 8:33 pm to Boat Motor Bandit
quote:
OB Farmers
Rice farmers are hedging on Trump Chinese rice deal. It was brought up at a meeting in Crowley just this weekend. Under the table discussion is also a bigger deal with North Korea by late Spring. We shall see.
What meeting in Crowley ? No rice farmers I know are depending on the Chinese to buy our rice. Lol at a secret deal with N Korea. You do also realize if N Korea buys rice it’s going to be California short and med grain
0
Posted on 2/26/19 at 8:37 pm to jimbeam
quote:
China is a net rice exporter right now
No they are not even if they claim to be
They are the world’s largest importer and producer and consumer and not top 5 in exports
Until this year they haven’t really exported much in the last 5-8 years and right now they are only exporting med grain
Posted on 2/26/19 at 8:38 pm to jimbeam
quote:
. No farmers I know drive $60k trucks unless they have outside income. That or they have no cushion in the bank
You must have never been to Madison or tensas parish
Posted on 2/26/19 at 8:44 pm to KemoSabe65
Cotton is fairly attractive.
Corn isn’t too bad. It’s profitable if you mind your p’s and q’s.
Soybeans is a break even venture for the most part these days.
I don’t deal with rice, but I’ve heard that rice isn’t too bad either right now.
Corn isn’t too bad. It’s profitable if you mind your p’s and q’s.
Soybeans is a break even venture for the most part these days.
I don’t deal with rice, but I’ve heard that rice isn’t too bad either right now.
Posted on 2/26/19 at 9:00 pm to Decisions
quote:
Land values in private sales have already softened and slowed some. I’ve been watching some pieces sit on the open market for quite a while now.
If interest rates continue to creep they will apply more downward pressure, the trade deals need to be worked out to bring soybeans back into the mix, and at some point these large investment firms are going to realize that the insurance farmers who rent out these large tracts of land aren’t a sustainable business model. If those guys ever start shedding land you will definitely see it head south fast.
Well a lot has to do with the actual piece of property. I’ve sold two pieces one leveled and irrigated, one only leveled both sold in 150 days, one local buyer one institutional. Both were sold for exactly the top end of my appraised value. I have one that has been up a year, not irrigated or leveled but laid out for it and I’ve had it priced high for various reasons. When I price it right it will sell.
Interest rates are low 4’s and actually down a bit. Money is still cheap for anyone borrowing and that is coming from someone who’s first mortgage was a bargain 16% circa early 80’s.
The investment groups and equity guys are in it for the long haul. They aren’t going to bail out. I agree the trade agreements need to be resolved-the quicker the better.
Posted on 2/26/19 at 9:21 pm to Decisions
It changes what you’ll owe every year
Duh!
Reason why it isn’t profitable is bc your note is too high and the income produced on a yearly basis doesn’t meet it.
Owning land (valuable land) I should add is one best long term invests someone can make.
Wealthiest people I know are land owners.
My grandfather owns around 2k acres... it appraised for 3800$/acre 7yrs ago.
It’s not worth less than than that now.
Ftr he paid 600-800 for it when bought.
So yes, it’s a tremendous asset to own.
Landleveling? Meh,,, if you need it.
We don’t irritate first acre.
Equipment? That’s really dumb thing to buy.. lease is a much better option.
Grain bends make sense if you have enough acres to fill them.
Duh!
Reason why it isn’t profitable is bc your note is too high and the income produced on a yearly basis doesn’t meet it.
Owning land (valuable land) I should add is one best long term invests someone can make.
Wealthiest people I know are land owners.
My grandfather owns around 2k acres... it appraised for 3800$/acre 7yrs ago.
It’s not worth less than than that now.
Ftr he paid 600-800 for it when bought.
So yes, it’s a tremendous asset to own.
Landleveling? Meh,,, if you need it.
We don’t irritate first acre.
Equipment? That’s really dumb thing to buy.. lease is a much better option.
Grain bends make sense if you have enough acres to fill them.
This post was edited on 2/26/19 at 9:27 pm
Posted on 2/26/19 at 9:24 pm to prostyleoffensetime
Only farmers making good money now is sugarcane.
But F cane.
This was the harvest year from hell for those guys.
But F cane.
This was the harvest year from hell for those guys.
Posted on 2/26/19 at 9:36 pm to p&g
What’s his gain beteeen purchase and now? What’s his annual return vs appraisal? Would bet the market is multiples better than what he has seen over the years of ownership. At his buy in price he had to have bought 30-40 years ago, amirite? Owning an asset returning <3% is a loser imo when you can double it in a conservative instrument easily.
There isn’t single person who would stick with his financial advisor if he was only returning 3% on a mill invested annually before taxes.
There isn’t single person who would stick with his financial advisor if he was only returning 3% on a mill invested annually before taxes.
Posted on 2/26/19 at 9:39 pm to Martini
quote:
Money is still cheap for anyone borrowing and that is coming from someone who’s first mortgage was a bargain 16% circa early 80’s.
No doubt.
quote:
The investment groups and equity guys are in it for the long haul. They aren’t going to bail out.
Definitely seems that way. Whenever I do occasionally hear of one selling it’s only to roll into another piece (at yet another bad value).
Posted on 2/26/19 at 9:49 pm to Martini
What did you pay for them?
Posted on 2/26/19 at 9:54 pm to p&g
quote:What's his basis when adjusted for inflation?
Ftr he paid 600-800 for it when bought.
Posted on 2/26/19 at 9:59 pm to KemoSabe65
To get back to original question. If your farm was cotton for years it probably had a "cotton base" that got transitioned to "generic base" a few years ago. Now, if you plant rice on "generic base" you can get a rice payment. If you have questions go to your local FSA office. FSA can tell you most profitable crop and how much potential rice payment will be. If not I'm sure you know who to call in that area.
Posted on 2/26/19 at 10:00 pm to p&g
quote:
It changes what you’ll owe every year
I don’t care how big the note is, I care about ROI.
quote:
Landleveling? Meh,,, if you need it.
If you farm in Louisiana you need it. We don’t use the irrigation every year. We use the improved drainage EVERY year.
quote:
We don’t irritate first acre.
And? I’ve got some choice ground that never missed making a good crop when it was dryland but most assuredly made even better yields with a bit of water.
quote:
Equipment? That’s really dumb thing to buy.. lease is a much better option.
I’m not going to get into the weeds of arguing lease vs. buy with you right now, but I will clarify my statement by saying that tasks you find yourself needing done often on the farm are best brought into the operation.
This post was edited on 2/26/19 at 10:02 pm
Posted on 2/26/19 at 10:12 pm to NELARiceGuy
quote:
If your farm was cotton for years it probably had a "cotton base" that got transitioned to "generic base" a few years ago.
Generic base is now gone. It will now be either seed cotton base or a representative mixture of the crops you planted the generic base to during a set time period (I forget the years).
Posted on 2/26/19 at 10:22 pm to White Bear
quote:
What did you pay for them?
Pay for what? The property?
Posted on 2/26/19 at 10:34 pm to Martini
quote:yeah, sorry. Just wondering if you paid appraised value? Just curious.
Pay for what? The property?
Posted on 2/26/19 at 10:55 pm to Jack Daniel
Truck=office building. You spend more time in it than your house.
Tractors, implements, etc.= office equipment. Break downs cost money.
Tractors, implements, etc.= office equipment. Break downs cost money.
Posted on 2/26/19 at 11:38 pm to Sparetime
Good equipment is like a good horse. When it comes time to make money, the piece of mind knowing that when it’s time to make money, you can rely on it is invaluable
Posted on 2/26/19 at 11:52 pm to Jack Daniel
quote:
I’m not terribly educated in the rowcrop industry. If that’s the case, how are all the farmers driving $250k tractors and $60k trucks?
Farm Credit, tax deductions, subsidies.
Posted on 2/27/19 at 6:27 am to KemoSabe65
I agree but why are the institutional guys staying in it?
They have made it damn near impossible to get land around the river now even if it is mostly recreational without being a multi millionaire.
They have made it damn near impossible to get land around the river now even if it is mostly recreational without being a multi millionaire.
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