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| High bid is being defined, in this instance, as what has been paid by high bidders at a cash rent auction, what is being paid by some of the local producers that cash rent land, and also the state rates put out by the survey that South Dakota State University puts out. The rent in this situation is $200/acre.
I will say that I feel that this is high knowing our area and the fact that our weather during the growing season can be very volatile with hard rain, hail, etc...
I sincerely wish my buddy luck with this venture. I just hope that his marketing plan comes together to make up for his higher costs. He is a very good farmer and does a good job of growing crops. I guess my gut is telling me that on this kind of marginal land the cash rent rate seems high to me. | |
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cash rent conversation
