Originally Posted by kwg020
Originally Posted by IA_fog
Originally Posted by Hastings
Originally Posted by IA_fog
Originally Posted by Hastings
1000 acres for $16,000,000 and produces $800,000 worth of corn sounds pretty good. 5% return to pay the interest.

Please expand your logic and where you find those figures
Iowa land according to hlg posting above goes for $16,000 an acre. Year in and year out about a 200 bushel average is to be expected. 200 bushels at $4 is $800 which is about average more or less a little. $800 on 1000 acres will gross $800,000. If you paid $16,000 per acre just add 3 zeros to that to get your price on 1000 acres. 16,000 x .05 = 800

Your off on your calculator
Average yield on the $16000 land is well north of 240 by if your any type of good farmer
The guy I help 5 yr average is 235
$4 corn,,, you will go broke
Cash corn right now for fall delivery is $4.50 had opportunities last dec/jan to sell fall corn for close to $5
Your also forgetting that these progressive farmers ( which anyone can do ) buy puts/calls to make money as well
The best farmers I know( my job is also in ag) spend more time behind the computer screen than in a tractor
You can get 240 bushels to the acre if you spend a pile of money on fertilizer and new equipment to have 22" rows. But, without the fertilizer and the rain plan on 180 or 200 bushels.

The folks spending $16,00 or more per acre are not always farmers. They are new York speculators, lawyers and doctors looking to get a tax break. They also want $350 an acre rent on improved ground, per season. Improved ground means tile and erosion berms. No little farmer can do that.

kwg

Running 30” rows down here, last year one of the driest on record whole farm average was 234
Gotta put fert on , planter is 15 years old, and no rain still made the bushels

We might have to be neighbors, but I don’t have to be neighborly. John Chisum