CRP

[Buckhammer]

I have 52 acres of tillable ground on my farm. I currently rent it out to a grain farmer. CRP is paying $2 less an acre than what i am getting for rent. For that extra $2 I am getting for rent I am not sure it is worth the drama/headache that goes with dealing with a renter.

For those of you that have or had ground in CRP tell me the good, bad and ugly of the CRP program. Thanks!

 

[504]

I collect my cash rent in January, no hassle. I get more than CRP. Crp

 

[Centerplate]

You may need to do some management on your CRP like mowing or burning. Check with your FSA office before you decide.

 

[Tony in SD]

I like 504 get all my rent money on January. If they dont pay on time, I can easily find another renter. As Centerplate said there are weed to spray, mow and or burn. Also you might want to check with FSA before you sign anything. I have heard that you can't displace a farmer renting your land by putting it into CRP without compensation. ie lump sum or % of you CRP payment.

 

[Buckhammer]

I don't have any problem getting my rent money. It is paid on time. I am just looking to take my farm in a different direction.

 

[flying belgian]

I didn't think you could put any land in crp. I thought it had to be marginal. I always collected my rent 1st of May and first of Nov. Had the money to pay both parts taxes and made it a little easier for my renter. 2nd part not due until he has crop to sell.

 

[Buckhammer]

I like 504 get all my rent money on January. If they dont pay on time, I can easily find another renter. As Centerplate said there are weed to spray, mow and or burn. Also you might want to check with FSA before you sign anything. I have heard that you can't displace a farmer renting your land by putting it into CRP without compensation. ie lump sum or % of you CRP payment.

I have a written contract with my renter and will fulfill it. Just trying to gather information so I can make an informed decision. I have a meeting at the USDA office next week to get some questions answered. Just wondering what others personal experiences are with CRP.

 

[Scott 730]

I have 52 acres of tillable ground on my farm. I currently rent it out to a grain farmer. CRP is paying $2 less an acre than what i am getting for rent. For that extra $2 I am getting for rent I am not sure it is worth the drama/headache that goes with dealing with a renter.

For those of you that have or had ground in CRP tell me the good, bad and ugly of the CRP program. Thanks!

What "drama/headache" comes with a renter?? Maybe you need a new renter.

 

[Huskergreen]

There will be up keep cost for the CRP, weed control, burning, and mowing. The rent is set for the time of the contract, 10 years, 15 years, If you rent to a farmer you can adjust the rent every year if needed. Our land tax seems to go up every year, so after 10 years you may be way short on income. But if you want wild life, CRP may be a better fit for your operation.

 

[ss55]

I have 52 acres of tillable ground on my farm. I currently rent it out to a grain farmer. CRP is paying $2 less an acre than what i am getting for rent. For that extra $2 I am getting for rent I am not sure it is worth the drama/headache that goes with dealing with a renter.

For those of you that have or had ground in CRP tell me the good, bad and ugly of the CRP program. Thanks!

Fertility levels of the ground might be lower after being in low maintenance CRP, mostly nitrogen leached out. Mowing and weed control will be on you rather than the renter.

 

[NY 986]

Read the fine print of the CRP contract. You will be expected to adhere to all provisions of it. In the past one mowing per year may have been sufficient but that may not be the case this time. Calculate all costs versus a rental agreement. CRP is not necessarily a bad thing as soil is rehabilitated via build up of organic matter. In the mad dash to make money many are sacrificing the future of the land. My soil is vulnerable to organic matter loss to the point where I would never bale up corn or soybean residue. If you are getting up there in years and expect to be gone before the contract concludes that complicates things for your heirs. Last I knew CRP contract stays with the land even when the original signer passes on. At least check on this if it is not spelled out on a contract.

 

[NoDakInMN]

How much drama can you have cash renting? Been doing it myself for nearly 40 years, zero drama. So I'm curious as to what issues you may have.

 

[Buckhammer]

How much drama can you have cash renting? Been doing it myself for nearly 40 years, zero drama. So I'm curious as to what issues you may have.

I have had 3 different renters in 35 years. There was a change in the first 2 renters due to their retirement. Now I am on to my third renter. I am just tired of the constant belly aching from these farmers about how tough times/farming is and how with these low commodity prices and/or milk prices are making them unprofitable.

As a landowner I am the first person they come to wanting me to adjust the land rent. My question then becomes what did the seed/chemical/fertilizer/fuel/equipment dealers say when you told them their prices are to high for you to be profitable. We know the answer to that and it is the same as mine.

When commodity prices are high I never see the good of it but when commodity prices are low somehow it is my responsibility to feel their pain. It has been this same narrative with all 3 renters and it is time to take a different path with my farm.

 

[NY 986]

I have had 3 different renters in 35 years. There was a change in the first 2 renters due to their retirement. Now I am on to my third renter. I am just tired of the constant belly aching from these farmers about how tough times/farming is and how with these low commodity prices and/or milk prices are making them unprofitable.

As a landowner I am the first person they come to wanting me to adjust the land rent. My question then becomes what did the seed/chemical/fertilizer/fuel/equipment dealers say when you told them their prices are to high for you to be profitable. We know the answer to that and it is the same as mine.

When commodity prices are high I never see the good of it but when commodity prices are low somehow it is my responsibility to feel their pain. It has been this same narrative with all 3 renters and it is time to take a different path with my farm.

The thing nobody likes to talk about but can be a serious problem is bullying. I heard of one tenant who threatened to burn the out buildings of his landlord if the landlord pulled the ground away from him. Also, was in a position to get a couple relatives fired from their jobs. It can be a nightmare if the bully is good at being Dr Jekyll to some people while the victim only sees Mr Hyde.

 

[Scott 730]

When commodity prices are high I never see the good of it but when commodity prices are low somehow it is my responsibility to feel their pain. It has been this same narrative with all 3 renters and it is time to take a different path with my farm.

Maybe you should have a share contract instead of straight cash rent then.

 

[Duner Wi]

When CRP contract expires you might be able to go straight in organic with out the wait period.
Be very clear on what your obligations are concerning weed control. I have seen it where you can't even cut thistle. It's for the birds, don't you know.

 

[flying belgian]

I have had 3 different renters in 35 years. There was a change in the first 2 renters due to their retirement. Now I am on to my third renter. I am just tired of the constant belly aching from these farmers about how tough times/farming is and how with these low commodity prices and/or milk prices are making them unprofitable.

As a landowner I am the first person they come to wanting me to adjust the land rent. My question then becomes what did the seed/chemical/fertilizer/fuel/equipment dealers say when you told them their prices are to high for you to be profitable. We know the answer to that and it is the same as mine.

When commodity prices are high I never see the good of it but when commodity prices are low somehow it is my responsibility to feel their pain. It has been this same narrative with all 3 renters and it is time to take a different path with my farm.

I can't even comprehend what it would be like to have my renter complain I'm charging to much rent. In my cut throat area they know that there are 15 guys already talking to me about renting the farm away from them.