Renting farm ground troubles

Jacarlson260 · Oct 8, 2013

I am a young guy in college that is currently farming with the family. I need to start renting some farm ground now for money to purchase a farm later on. I have had 0 luck with craigslist adds or other sites. I am at the point of going to people near where we farm and knocking on their door and just flat out asking them if they have any or know anyone that does. I know I am young but I have to start now to make it in this world. Anyone else have any ideas or thoughts on this topic. Any advice would be greatly appreciated.

504-1 · Oct 8, 2013

I would just start knocking on doors, a face to face will go farther than you can imagine.

Jim in Ma. · Oct 8, 2013

I agree with face to face but - Get your story straight and tell everyone you talk to the same thing.

jlewis457 · Oct 8, 2013

I Would knock on doors in the area where your family farms, you might find someone willing to work out a land contract on farmland or just rent you some ground to get you started. By farming near home you will keep your costs down and family should help you get a start while you help them.
Hope this Helps
John

notjustair · Oct 8, 2013

Don't let these comments offend you:

Be honest with yourself - what reputation does your family have? You may be the polar opposite of an uncle that didn't always do things the right way. That reputation will affect what you can do. You may need to broaden your circle in order to get the chance to prove yourself. Rented ground is long term. You are really going to need to be creative to get your foot in the door.

Not trying to be mean, but it is the truth. I have neighbors around here I wouldn't deal with due to other family members and the fear they are alike. Sad but it is true.

Ray · Oct 8, 2013

Unless you have some big bucks for cash rent and a good line of machinery your out of luck.A lot of owners want all of the cash rent money up front.There's farmers in my area offering big bucks through newspaper adds and will rent anything.

JD Seller · Oct 8, 2013

Do they teach economics in that college??? You would be much better off waiting a while to rent ground in most places today. The next 12-24 months are going to be losers for cash grain farming. The prices are swinging back while the inputs/rents are still high. The rents for next year here are higher than last year. The guys are just going to make a little around me with high yields. The rents many are getting/giving are locking in a loss for next year.

Here is another issue. Lets just say $400/acre rent (that is the mid rent here right now) So a fellow has 100 acres to rent you. Can you borrow the rent and input costs while in school???? You are talking $40,000 just for the rent. Then another $40,000 for the rest of your inputs. Can you swing $80,000 right now????

This is how I would be looking at you as a renter right now.

So I would just spread the word you are looking for some ground to rent but put a realistic cap on the rent you can pay. Then be prepared to wait a while to get some ground to rent.

GordoSD · Oct 9, 2013

Why not continue to farm with the family. Why do you want to be the lone wolf/ Tell us the rest of the story.

Traditional Farmer · Oct 9, 2013

In addition to the good advice others have offered also consider that you'll be making some enemies as the land is most likely being rented now by someone and they're not going to like it when you get them kicked out.To be a successful renter you have to be a good politican.Take it slow and pick your places carefully.

paul · Oct 9, 2013

Pretty much as mentioned.

It is frustrating, and slow.

People you talk to now, might remember you 5 years from now and call back.

This is a slow process, and you will feel you don't have any time to waste....

It is frustrating.

And, be aware you are throwing other people off to get land rented. Its a tough game. Someday others will come after land you are farming, and you will know what goes around comes around.

Pick your battles wisely.

Be upfront and honest.

Realize farming it a tough thing for the first 10 years, you will feel like you are spinning your wheels and going no where.

Make good inroads with retiring farmers, get your name and face out there in a positive way.

Might take 3-5 years but it pays off.

Paul

FBH44 · Oct 9, 2013

Knocking on doors and friendly honest face-to-face may well be the best way. I know a couple who loved the look of an old farm, went up to the door and knocked and asked, if it was for sale, the nice old lady told her No honey. But she left their phone number. Some years later the nice old lady called, told her they had decided to retire, were they still interested. Bought a nice farm, and everyone w3as very happy.

MarkB_MI · Oct 9, 2013

With farmland prices at an all-time high, you'll have to offer very high cash rent if you expect to get anything. Have you crunched the numbers and proven to yourself you can make money at prevailing rents? What are you going use for equipment? Can you get operating capital? I hate to be a pessimist, but with sky-high property values, it's going to be tough to make a profit even if current commodity prices hold up.

Iowa Jim · Oct 9, 2013

One of the issues we have faced in gaining more farm ground is the "We didn't know you wanted to rent more ground" attitude. We are trying to overcome that by using road side signage for most of the ground we farm coupled with advertisements in the local newspapers.

Jim

Hotflashjr · Oct 9, 2013

I did just what you are thinking of. I went to a neighbor with some fallow land and asked what I could do to farm on it. I had to clean some fence rows of trees and put up a new gate for use of the field. This year I have to provide 5% of profits as rent payment. Not a bad deal to get my feet wet for the first few years.

showcrop · Oct 9, 2013

I agree with JDSeller and MarkB_Mi. Basic economics says buy low sell high, and when others are buying, sell. This bubble will burst, and many will go under. If you can come in at that time with cash and no debt you will be way ahead of others. I agree with staying with the family for now and work at improving bottom line there so that you can save more, in order to have more to invest.

1206SWMO · Oct 9, 2013

Around me there are 5-10 people wanting every acre that is available to farm.....Theres several people in my area farming 5000-8000 acres and they want more no matter how far they have to go for it....To rent ground you will have to bid so high that most of the profit will be gone..

My advice is that when you finish college get the best paying job available and save all the money that you can for the future purchase of farm ground..

Renting farm ground troubles

Jacarlson260

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504-1

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Jim in Ma.

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jlewis457

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notjustair

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Ray

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JD Seller

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GordoSD

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Traditional Farmer

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paul

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FBH44

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MarkB_MI

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Iowa Jim

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Hotflashjr

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showcrop

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1206SWMO

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