Recent university studies find that corn kernels usually hold their weight through the dry-down process while pinpointing the operational realities that lead to missing grain. https://t.co/QFIwVUWVwK
@embdenhaymaker @gwiesefarms The most profitable? Usually 4th-5th gen operations, own 70-80% of their balance sheet and operate within their means with minimal IT debt and below avg cost of living ~ cost of a new Z06 vette. Their banker wishes they borrowed more, but they won’t.
The Minnesota chapter of Farm Mgrs and Rural Appraisers (ASFMRA) has completed their 2025 Land Value Cash Rent Survey - download is available for the public at the following link: https://t.co/IaNBkU7UmM
#MNASFMRA#AgTwitter
@5150Farms Make sure to have an appraisal performed on your behalf for negotiations. The permanent easement, drainage tile impacts, compaction, farmability impacts, etc., all needs to be considered.
@agturbobrazil I think to best illustrate the impact of oil prices on farm-level COP, do it on a $/bu or $/ac basis. Typically, a relatively minor % (5-10%) of variable costs. People always brag about what they paid for LP/Fuel, when they need to focus on the big 3, or revenue side.
@gwiesefarms The toughest conversations with borrowers were the ones trying to explain the concept of ear marking debt, and need for proper structure. If someone has a lack of accounting knowledge and debt structure, they just run their operation like an open checkbook.
Wilkin County, MN Farmland Auction
Sold by the same broker/agent in 21 & 26.
4/2/2021 - $1,048,000
1/21/2026 - $1,152,000
Previous 3 years - $270 cash rent contract, open for 2026
~2.00% annualized appreciation over the hold
~3.25% Cap Rate (only net RE taxes, using $270/ac)
@steveconaway1 Similarly, going with level principal vs level payment makes a huge difference. If a person can handle a stiffer front end, makes a material difference on LT notes such as RE.
@BradyD78 So either there are a good number of acres with a new tenant, or folks were grossly over-machined. If only we knew how much equity each unit has after paying the bank and recapture to Uncle Sam.
@nick_kut @embdenhaymaker I’m sure they have a good flat brokering fee regardless of sale or no sale. It will be interesting to see where the auction ends up.
Here’s an interesting one for you - technology, or shenanigans.
Land auction today in Traill County, ND. Within two miles of a 25k head dairy that is being built.
Original supposed high bid was $12,500. But that bid, and all bids back to runner up’s $8k bid were voided, with bidding restarting.
Note the original high bidder’s jumping of bid increments by $500 & nearly $1k.
Interesting that the actual high bidder was not the runner up bidder the first round.
Also note that original runner up either had a change of heart, change of math, or woke up - his last original bid was $12,025. Final bid as the second round runner up was $8,500.
Emotions? Rafter bidding? Gut check?
https://t.co/TnUjNEexhR