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Tractor Talk Discussion Board

Re: Gov't wants to give me $10,500 for CREP


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Posted by John_PA on July 16, 2013 at 23:19:19 from (71.182.173.45):

In Reply to: Gov't wants to give me $10,500 for CREP posted by rrlund on July 16, 2013 at 16:46:35:

Quoting Removed, click Modern View to see

That's the reaction of a lot of people... and it's a shame.

The shame of it is that the land has to be kept out for 10 years. 10 years is a very long time. In black land Ohio, just southwest of Columbus, it is up to $360 per acre. Here, it is $140 per acre.



To the original poster-

Consider the rules of the program, and breaching them could result in removal from the program and all paid money for the entire term of the contract would have to be refunded back to your Uncle Sam. So, if you breach contract on the 9th year of the program, you would get a bill from them for $94,500.

The other thing to consider is that 10 years is a very long time. Let's say you get a windfall at some point in the next ten years, and you want to do something with that land. Your hands would be tied. It sounds to me like you are farming a bit now. I am no chicken farmer, so I don't know if 8300 is a large number, but if you don't absolutely need the money, you shouldn't renew. It could tie you up down the road and you might regret it.

That is just my opinion. I guess technically I am BTO. I mean, if you are paying $50,000 a year for chicken feed, then your total expenses are probably more than mine, but, I rent farms all over my area. Is that what makes a BTO? I don't have a choice. I don't have water for livestock, nor a desire to own livestock, so I cash crop. My biggest problem is that in order to make a livable income, I need to have many many acres for crops. Many of the farms in my area are signed into CRP that I have a lot of trouble expanding. The other problem is that the CRP program is paying $140 per acre, and the going rent price is no where near that. I am competing with someone who doesn't have to justify the extra rent costs, since they aren't trying to profit from the 10 year contract. I have to profit, or I have to get a job at McDonalds.

I don't want to work at McDonalds.


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