How much to buy back beans…..

[Rous14]

Hey guys, own a farm with around 19 acres of tillable that has beans on it currently. I’d like to have the farmer leave around 4 acres of them for me. What would you guys suspect would be a fair price or fair way to go about that? Fwiw, the farmer told me 50 bushel an acre is an avg of what he typically gets on that field. He’s currently paying me $175/ac cash rent. Thoughts?

 

[IowaBowHunter1983]

50x$15x4= $3k

Might negotiate down as he doesn't have to combine and haul.

I'd also say this is gonna be a down year on yield for alot of parts due to drought so that 50 bu average may come down.

 

[bigbuckhunter88]

Only thing I would add to what IBH1983 would be to take into account any inputs he applied. Fertilizer,spraying, etc. As noted he will save some by not having to harvest, but depending on where he is located it might cause him to bring some equipment back in the spring

 

[IowaBowHunter1983]

Only thing I would add to what IBH1983 would be to take into account any inputs he applied. Fertilizer,spraying, etc. As noted he will save some by not having to harvest, but depending on where he is located it might cause him to bring some equipment back in the spring

Inputs really shouldn't matter. "What are the beans worth sitting there" is really the question... what is it costing him not to take them.

If he is willing to sell them back for what he has into them... well that be a far better deal for you.

 

[Rous14]

Inputs really shouldn't matter. "What are the beans worth sitting there" is really the question... what is it costing him not to take them.

If he is willing to sell them back for what he has into them... well that be a far better deal for you.

10-4, that answers my question. Wasn’t sure if the typical scenario is landowner/hunter paying full “retail” or farmers cost.
Thanks guys.

 

[IowaBowHunter1983]

10-4, that answers my question. Wasn’t sure if the typical scenario is landowner/hunter paying full “retail” or farmers cost.
Thanks guys.

I would say if farmer was doing a couple hundred acres you would have a far better chance of negotiating to pay for inputs only. Small stuff.... it becomes a fruitless endeavor for farmer.

I would try to negotiate crops to be left up front as part of your cash rent agreement.

 

[Sligh1]

Agree on above. U need to make it “easy” for farmer. If someone wanted to buy my crops to stand & made it a “no Brainer” & “simple” I’d do it no prob. Especially Beans which deer clean up well. If XYZ guy wanted to nickel & dime every bit & haggle about things (not saying u are, speaking generally) - I’d just bag it and say “no thanks, I’ll just harvest it all”. Make it worth their while cause it is a pain in a way. Making sure they take the time to go around it & so on. Make sure u flag it off perfect & give them a map to put in combine so it’s easy for them.

I personally would pay them the market rate per bushel to leave up. Simple & the small amount the farmer saves by not harvesting & hauling is about a wash based on the small hassle of dealing with the issue.

 

[bluedog69]

50 bu/acre x $15 a bushel... gives a rough starting place
if they hit more $/bu then figure that.

Him leaving a few acres if he is a big farmer may not affect him much, but if he is smaller than it will hurt his APH.
Which in turn could cost him crop insurance money down the road if he has a disaster.

 

[Hardwood11]

For the future it might better to have the rent negotiated early in the year and as part of the rent he has to plant (lets just say 3 acres of beans)...knock X amount off the rent in exchange.

 

[8bitnes]

50x$15x4= $3k

Might negotiate down as he doesn't have to combine and haul.

I'd also say this is gonna be a down year on yield for alot of parts due to drought so that 50 bu average may come down.

The whole 14 acres is bringing in 700 bushels. That's a semi load of hauling max. Only thing farmer saves is minutes in the field and fuel to run combine for those minutes.

$3000 is a fair price. It's a touch better than current market rates so it does good faith to the tenant when making a special request

 

[Buckscrape]

Easy. Give him free rent for 15 acres if he seeds the other 4 acres for you.

 

[Tmayer13]

your best bet.....just ask...he may want nothing or he may want top dollar. But as others have mentioned going forward I would let him know that you would like X amount left standing every year and figure out the best way for you guys to come to an agreement.

 

[northcedar]

If it's the 4 acres closest to the woods then they probably won't yield as much as the rest of field. A visible inspection should give an idea if they look worse than what's closer to the road.

 

[Rous14]

For the future it might better to have the rent negotiated early in the year and as part of the rent he has to plant (lets just say 3 acres of beans)...knock X amount off the rent in exchange.

Yep 10-4
Closed on the farm early summer after everything was planted but going forward I’ll definitely have it worked out up front. Appreciate the advice

 

[Hardwood11]

Yep 10-4
Closed on the farm early summer after everything was planted but going forward I’ll definitely have it worked out up front. Appreciate the advice

You bet...one tip---Do not tell him where you want the beans left until they are up and mature! I have had a couple farmers skimp on those areas if they know the location. Maybe you trust your guy, but I am just saying it happens.

 

[Trapshooter1]

I was in the same situation last summer/fall. I bought a farm, that Is a mix of tillable and timber/cover. I approached the current farmer about buying 1.5 acres of standing beans.

We did, Yield on the farm which was 55× price he sold them for. Which at the time was 12.50 dollars. Times 1.5 acres. Worked well, he got his money I got a honey hole to hunt for the late season.
On my farm a secluded food source is the key.

 

[seven twenty]

Pay the inputs and only charge him for 15 acres. Win, win for both.

These guys saying pay $3k and it’s fair didn’t catch that your only getting $3325 total. I wouldn’t think that letting someone farm my 15a for $325 was fair to me. Maybe sharecrop the whole thing as an option.

 

[Rous14]

Pay the inputs and only charge him for 15 acres. Win, win for both.

These guys saying pay $3k and it’s fair didn’t catch that your only getting $3325 total. I wouldn’t think that letting someone farm my 15a for $325 was fair to me. Maybe sharecrop the whole thing as an option.

That’s the plan for next year and what the farmer suggested as well. Not necessarily sure why that can’t be the case this fall but I’d like to start the relationship off on a good note so I didn’t push.