Anyone here cash-rent land?

[Cadman]

I'm just curious if there's anyone on the forum that has tillable land they cash-rent for income? 10 years ago we bought 50 acres to build our starter (and keeper) home on and continued the PO's rental agreement on the other 48 or so. However, I'm finding the Dept of Ag is offering some very competitive CRP programs (wildlife habitats/prairie establishment) available on a per-acre basis. Anyone else participate in such things? -C

[Cadman]

Really? Nobody? Either the ones 'in the know' are keeping quiet or this is an untapped mustachian market...

[sunshine]

We did when we had a hobby farm. That was a few years back though. The one down side of getting in the gov programs was we had no say over hunting on our land. We rented in to a farmer instead.

[Fishindude]

I've got a 140 acre farm which used to be approx. 110 acres crop fields and the balance un-tillable woods, etc.   As an avid hunter, I've gradually put it all into various CRP government wildlife habitat programs, and have been very pleased.  Planted tons of trees, shrubs, native prairie grasses etc., and have created some beautiful habitat, and great hunting while getting paid to do so.   There is some upkeep and maintenance required, but I enjoy that work.

Have one chunk that expires at year end which we intend to re-enroll.

Don't understand Sunshine's comment about "we had no say over hunting our land".
Our ground remains private, and their are no conditions in any of these contracts that say otherwise.

[Axecleaver]

Interested in following this thread. There are quite a few people in my rural area who rent their farmland to a handful of farmers, most of whom raise corn for livestock. There is some soybean and sunflower production here, too, and some folks who rent out haying rights. In the Hudson River Valley, pasture generally produces hay twice a year if you do nothing at all to the land, although you can get better results with some basic land management. 

In general, landowners are seeking to generate enough money to pay their property taxes, and not much else. Curious what kind of $ we are talking about here for taking land "out of production" under the CRP program.

[Fishindude]

Income per acre can vary widely depending upon the program you are in, your particular soil type, etc.   Stuff I've seen ranged anywhere from $80 to $290 per acre.
Most of these programs require and initial planting of something and routine maintenance of the plantings, and you can typically get reimbursed a portion of these expenses.

To get the real details, you need to visit your local US Dept of Agriculture, NRCS Office and see what type of programs are available in your particular area.

[Cadman]

It does surprise me this topic hasn’t come up before. From where I’m sitting, the income is similar to a rental unit (and the taxes, lower), without all the headaches, cost and maintenance those things bring. It may not be quite as lucrative, but it’s entirely passive. CRP is a bit more work; for what I'm looking at it would be an occasional burn.

I've been renting out for corn/soybeans for a number of years with no complaints, albeit at lower rental prices than the avg since my soil is so-so. However, a neighbor recently turned me onto the CP-42 program which is native grasses/wildflowers (a quick google will bring up the brochure). 10-year commitment, $150/acre signing bonus, competitive cash rent pricing and 50% cost share for establishment and maintenance. I checked with the FSA last week on only doing a few acres, but after a quote and further investigation, might just do the entire thing. A local quote to have it planted (takes a special drill) was $50/acre + seed. Seems like a no-brainer right now.

[Polixenes]

British Columbia: Whilst house-hunting we visited a home with a few acres of land out back with appletrees. The owner has a handshake agreement with the neighbor who does everything necessary on the land to cultivate and sell the produce. Out of a $25-$35k annual average income, the neighbor deducts his costs and they share the balance. There is also an added benefit that there is a rebate on property taxes if your land is used for agriculture.