|
| I did the exact same thing 3 years ago-but with 250 acres and $150 per acre rent. I haven't made any money yet-but have a line of slowly improving equipment that is all paid for with cash as I go. Custom fees killed me the 1st year-ESPECIALLY HARVESTING-but getting less and less as I add equipment. I don't expect to put any money in my pocket for another 3 years at best but am building equity.
If your credit is good get a "beginning farmer loan" from Farm Credit Services-they have basically financed 100% of my inputs the 1st 3 years. Also it isn't cheap but I buy enough insurance to cover inputs and rent-nothing more-but that guarantees I get another shot next year. I know a lot of people don't like Pioneer but they gave me a pretty good financing deal on loan to cover seed and some chemicals used on that crop.
Some will tell you it can't be done below the cost of production-I am living proof that is not true. But if you are going 100% custom for planting and harvesting it is going to be very very tight.
You are smart looking at no-till/strip-till. Lots less time works well with regular job and less equipment sure helps a guy starting out. 300 acres you should be able to do with 6-row stuff-and that old 6 row equipment is cheap. I think you will find a nice old planter for $3,000-$5,000-at $10 / acre on 300 acres doesn't take long to pay back. Ditto for an old combine if you have the capability to fix it up before you start and make in season repairs, $25-$30 an acre X 300 acres is $7,500+ per year custom harvest costs+PLUS hauling-on 300 acres that is a LOT.
Starting farming without a good chunk of cash is going to make the 1st couple years real critical. If you have any savings you are willing to put up it will be easier-but if you don't have good credit it is going to be really hard. | |
|
|
300 acres to rent, what would you do?
