[hippiejohn]

Hi!

I am living in the great state of Maine. I recently purchased an old farmhouse here which I am fixing up. I have a little cash set aside and was considering investing in some farmland.

I found a nice looking piece of land, about 50 acres planted in hay.

The land is currently leased out by a farmer.

It appears that the person who is leasing the land pays almost nothing for the use of the land-maybe 3000 a year?

Could I hire someone to plant/harvest the hay and make a profit?

Excuse my ignorance on the subject, and thanks for your help.

john

 

[mlappin]

3000 a year in rent would be REAL low around here but night very well be the norm in your area.

Also need to know what hay sales for in your area.

What's the property taxes in the area? Depending wha the taxes are, normal rent in your area, and what hay sales for, the 3000 after taxes might be all the profit you'll get off it.

 

[Vol]

Probably not for what you have in mind. Are you going to sell the hay? If so, do you have a barn to store it in? Do you have a customer base in mind? By the time you hire custom fertilizing and custom baling there will be very little profit margin. What kind of grass does the farm have? Is it weedy? Does the soil need many inputs/amendments? Go talk to the local ag office and have them meet you and look at the place together and listen to what they have to say.

Regards, Mike

 

[FarmerCline]

It all depends on your soil and what farmland in your area rents for.....Here good farmland rents for no more than around $50 an acre with most hay ground less than that. I could not make any money if I had to pay the rent prices that the boys out in the Midwest do.....but our soil is much poorer here also and does not yield like the Midwest soils.

 

[FarmHand78]

My wife's family just sold her grandmother's farm last night, the cash rent rate on it was $500 per acre, CSR in the high 80's and low 90's all flat black dirt. But that is here in southern Iowa. Drive about 30 minutes away and you get into the $200 per acre cash rent. Drive another 30 minutes and you'd be lucky to get $100 per acre. It all depends on the soil quality, grain market and some other things. I've got hay ground rented for $30 per acre and some rented just for keeping the fields and ditches mowed. $30 per acre might be right on, might be low, might be high.