Farm land rent prices.

Gun guru · Apr 13, 2012

A buddy of mine has 15 acres that he allows a local farmer to use. How much per acre should by buddy be charging this farmer for use of the land? He is getting $400 per year from the farmer, He wants more $$$ from the farmer. My buddy is thinking of allowing hunters to run around the whole 40 acres that he has, 20 acres of woods + his own home are on this 40 acres. (hunters could be a pain, but a lot more money)
This is in Michigan, 40 miles northeast of Flint.
Please chime in and give info on what is fair.
Thanks.

Daryl in PA · Apr 13, 2012

I guess it depends on the soil. I presently get 125.00 per acre (i think it should be higher). 40 minutes south of me, you can't touch farmland for less than 400.00 per acre (limestone soil). Ask the present farmer how many bushel per acre is he getting. Hopefully he tells you the truth............lol.

MarkB_MI · Apr 13, 2012

Not enough information.

Pasture or cropland? Clay or sand? What improvements? I assume that's $400/year total, not $400 per acre per year.

A starting point would be the USDA's National Agriculture Statistics Service, which reports average farmland rents by county. Click on the "quickstats" link on the page below.
NASS cash rents by county.

Polish Mike · Apr 13, 2012

"My buddy is thinking of allowing hunters to run around the whole 40 acres that he has, 20 acres of woods + his own home are on this 40 acres."

He must be outta his mind...That's just not that big a piece of ground.

Dieselrider · Apr 13, 2012

Is the farmer adding lime and or soil amenities to help the soil. That helps you both and should be considered. If he isn't you should be if you want the land to be fertile in the future.
If he is a good farmer and keeping up the land then rent shouldn't be too high IMO but, if all he is doing is taking from the soil and not returning anything then you or someone will have to at some point and that will be an expense. Just consider these things in the equation. Also, what would you be doing with the land if he was not farming it?

paul · Apr 13, 2012

15 acres bordered by woods is kinda small field, and the trees would harm an acre's worth of potential..... Is it rectangular, or an odd shape - odd shapes, esp smaller like that, are less desirable.

No one will drive a real long distance to farm a smaller patch, so they are limited to finding renters from nearby, or renting other land fairly close.

These things affect rent prices as well. Aside from the yirld potential the others mention.

My sis had 5 acres of farm land, good soil but all of the above issues. It cost me more fuel to do the 10 mile round trip than to actually work, plant, spray, or harvest the ground. While good farm land was going for $150 an acre at the time, I penciled it out & I couldn't really afford $50 an acre, when you considered the loss to tree shade, odd field sizes, deer & other wildlife coming out of the woods, and the cost to get there & back.Just not enough acres, and despite the good ground, a lot of negative issues that held back total yield.

So, it's gonna be hard to tell you a good fair rent price from far away.

--->Paul

just another old geezer · Apr 13, 2012

Rent for crop land around here is presently $100-$125 per acre. With rumors of a local BTO paying up to $300 per acre for the best land.

Gun guru · Apr 13, 2012

It is over 12" deep of topsoil.
And it is a square 15 acres, Flat land with a little slope to it.

Spook · Apr 13, 2012

There is a reason so much property is post "no tresspassing". The average hunter is a slob. Given that, he might look at insurance. What's the liability when you take money for it?

L.C. Gray · Apr 13, 2012

OK, I'm know I'm pleading dumb here, but after reading about "BTOs" several times over the past couple of days, I still can't decifer what that is an acronym for.

in-too-deep · Apr 13, 2012

Big Time Operator

IaGary · Apr 13, 2012

I use the 1/3 rule of thumb.

If the corn yields 200 bu per acre and you can get $5.50 a bushel for it then that would be $1100 an acre income.

So the landowner should get 1/3 or $360.

If the land only yields 150 bushel per acre we are talking about $260 or so an acre rent.

The lower yield you get the landowner gets a smaller percentage cause the expenses are the same for the renter for machinery seed and so on.

Unless that land is yielding over 200 per acre I say the landlord is getting darn good rent.

Gary

IaGary · Apr 13, 2012

I should have added- I know 2 different farmers can get 2 different yields so you kinda have to go by the CSR (corn suitability rating).

All land in the US has been rated back in the 1940's or 1950's for CSR and can be checked.

Excellent ground is 90+ CSR.

Poor ground would be below 50 CSR.

I have land from 45 CSR (sandy knobs) to 95 CSR( good black flat soil)

Gary

fixerupper · Apr 13, 2012

Being square helps. How is the access? Can today's equipment get to it easily? Can trucks get to it? A farmer who lives a few miles away might be using trucks to haul the grain away. Any low-weight bridges to cross? Is a grain market close by? $400 per year won't pay the taxes on the whole unit. If the soil is any good he should be getting $3000 a year or more. Jim

Ralph Bauer · Apr 13, 2012

No pun intended, gun guru, but if you have hunters running around on 40 acres, you will be in the firing lane every time.....I would not feel safe on my own land. Especially with woods where one can't see them well despite orange clothing. We have about 80 acres with the house on the north side (w-e=1/4 mi by n-s=1/2 mi) 19 trees scattered (yepp, I counted them and I am darn proud of 'em!!!),otherwise grass, fla, open. I let my neighbor hunt on it during bird season, him starting by the house going southbound. I always keep an eye on him. Otherwise, closest neighbor lives almost a mile away, so no endangerment most of the time...

GordoSD · Apr 13, 2012

Do as they do in Texas. One piece of Land there is leased 3-7 times. Deer hunting group, Quail hunting group, pasture or hay farmer, rancher, oil, gas, and minerals.

Leroy · Apr 13, 2012

If the arithment in my head is halfway correct then he is only getting about $27-28 dollars per acre so how is that darn good rent. At $30 per acre times 15 acres that would be $450. Any tillable ground should be at least $75 per acre with good ground and good location a lot more than that.

David G · Apr 13, 2012

Look at the numbers IA gary posted, that equation should work for whatever area you live in. Rent in Eastern Iowa is going for $250 - $400 per acre depending on the potential yields.

rrlund · Apr 13, 2012

I can tell you from experience,a small field like that in that location,wildlife damage is going to be intense. If he cares at all about hunting,the guy working it is doing him a favor working it at all. $40 an acre would be tops,and your buddy should stop his greedy whining and be dammed thankful he's found somebody who'll throw money down a rathole feeding the deer and birds for him.

wilson ind · Apr 13, 2012

I'm with you Why cannot folks just say what they are talking about not use first letter. Makes as much sence as measuring distance in time unless going to sun!!!!

just another old geezer · Apr 13, 2012

Bit time operator

IaGary · Apr 13, 2012

Yep I miss read his post.I thought he was getting 400 an acre not 400 total.

Wonder if he has any land by me I could rent.

Gary

Gun guru · Apr 13, 2012

That is $400 total, for all 15 acres.
I think he is getting the short end of the stick.

12" deep of topsoil too.

1936 · Apr 16, 2012

Not good when trying to talk when your mouth is full.

mkirsch · Apr 16, 2012

How do you go about getting hunters to PAY to hunt on your land? Around here they just go wherever they damn well please. There are a few who ask for permission, but they are expecting you to let them access it for FREE. If you want lease/rent money to hunt the land they will simply wait until you're not looking and go on your property anyway. After all, they have guns...

Farm land rent prices.

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