I am looking at a farm to purchase and had a few questions for the farmers out there. 78 acres, 53 in CRP for one more year (one more $5300 payment coming this fall), asking $2740 an acre in eastern Iowa. Its been in CRP for 20 years and I was told by the assessors office it has an average CSR of 44. I was suprised by the CSR number because the county average is 81. Can this number change because its been in CRP for so long or is it strictly based on soil type? To those who have experience with this kind of thing do you think the numbers add up? Dont know if I would rent it or share crop it yet.
dbltree
Super Moderator
I'm not an expert on CSR by anymeans but I don't think it can change? Someone else may know otherwise?
Corn Suitability Ratings are based on a number of factors that I don't think will ever change, such as soil type and slopes that affect corn production.
Here are some links on the subject
Corn Suitability Ratings
Soil Survey and Digital Soil Data
Some thoughts on an Ag forum about CSR
CSR Forum Discussion
Corn Suitability Ratings - An Index to Soil Productivity
I would talk to the local NRCS people for more info but I think it is what it is which should have a negative impact on the price and prices are already depressed.
I would be offering less then $2000 grand an acre if I were you...
Hardwood11
It is going to be a good fall!
CSR is based on soil type and slopes. You could keep some of the more marginal soils/sloped areas in CRP and then the crop ground would be more attractive to farm, with possibly a higher CSR on the crop acres. Depending on the county, there still seems to be a strong demand to rent crop ground
Yeah- pretty sure your csr is not gonna change. The county avg might be 81 but makes sense your farm is 44 and in CRP. The county will generally want to put HEL (highly errodable) soils and rougher ground in CRP- probably why yours is in CRP. Like said above- you probably could farm some good portions and choose to leave some in. You could farm the whole thing BUT as a hunter & wanting to keep soil from errosion- you will likely keep some in. Good luck, sounds cool!
Hardwood11
It is going to be a good fall!
I would agree with dbltree on the price, kind of stiff for 44 CSR farm, unless the hunting and/or location makes it jump up in value. One other note, have the FSA/NRCS look at the aerial and have them determine if anything is eligible for continuous CRP when the general CRP runs out. The continuous CRP rates are higher, cost share is better and you will get a bonus payment per acre. Just a thought.
As stated above the CSR is based on soil type and slope of the land. It does not make a difference how long its been in CRP.
Also, the price does not seem that out of line to me, most sales on farms with tillable land are selling for around $60-$70 per CSR point per acre, some more, some less depending on what else the farm has to offer.
Also, the price does not seem that out of line to me, most sales on farms with tillable land are selling for around $60-$70 per CSR point per acre, some more, some less depending on what else the farm has to offer.
So I did some research and got a survey for the entire farm. The main part of the farm where you would actually farm has a CSR of 68. I felt a little better after seeing that. Went to the bank last night, they need about a week to decide. I guess we will see how it pans out.
ironwood
Active Member
http://websoilsurvey.nrcs.usda.gov/app/WebSoilSurvey.aspx
You can create a great custom report fast at this site. I have used it to make decision concerning CRP placement and general land use.
PM me if you would like a quick report from this site or walked through making your own
I have found that the more marginal soils often are the best for adding habitat. The report you can generate here make it easier to determine what maybe the best management plan for the entire property. I like my farmer to be working the best soils and pay a fair value for what they are actually farming. It also pays to consider their equipment when laying out conservation practices. Making your investment more attractive to the renter and the wildlife is rewarding in more ways than a one sided approach.<O
You can create a great custom report fast at this site. I have used it to make decision concerning CRP placement and general land use.
PM me if you would like a quick report from this site or walked through making your own
I have found that the more marginal soils often are the best for adding habitat. The report you can generate here make it easier to determine what maybe the best management plan for the entire property. I like my farmer to be working the best soils and pay a fair value for what they are actually farming. It also pays to consider their equipment when laying out conservation practices. Making your investment more attractive to the renter and the wildlife is rewarding in more ways than a one sided approach.<O
Critter
Life Member
I actually had good luck with my local bank when FCS didn't come through for me. I wanted to use some of the equity in my home as part of the downpayment.......FCS couldn't do it, but my local banker worked it out with me. I think you can lock in a term rate with FCS though, where as my bank could only allow a 5 year adjustable with a lower rate.
JNRBRONC
Well-Known Member
When we bought our property, the guy at FCS said, and I quote "You'd be a blemish on our portfolio". We had a down payment and the property was enrolled in CRP (early, too). We went to Hill's Bank and have been there ever since.
Critter
Life Member
That's our "local" bank as well Randy.......:way:
treerat
Active Member
Scott,
That price seems pretty reasonable for Eastern Iowa. Land that size with a mix of tillable and timber would have listed for $3000-3200 in NE Iowa just a year ago. You may want to see if you can qualify for FSA land loans if you think you will be farming the land.
http://www.fsa.usda.gov/FSA/webapp?area=home&subject=fmlp&topic=landing
Good luck!
That price seems pretty reasonable for Eastern Iowa. Land that size with a mix of tillable and timber would have listed for $3000-3200 in NE Iowa just a year ago. You may want to see if you can qualify for FSA land loans if you think you will be farming the land.
http://www.fsa.usda.gov/FSA/webapp?area=home&subject=fmlp&topic=landing
Good luck!
Hardwood11
It is going to be a good fall!
Scott: The price may be justifiable, but it sure doesn't hurt to make a lower offer. The market has changed in the past year. Unless you are competing with another potential buyer, I can't see why you wouldn't try $2000 an acre or slightly higher, you can always come up in price.
A CSR of 68 on the main farm, should prove to be attractive to rent for a local farmer, unless you plan on farming it yourself. Good luck!
A CSR of 68 on the main farm, should prove to be attractive to rent for a local farmer, unless you plan on farming it yourself. Good luck!
bloodhoundhandler
New Member
Best of luck to you I hope you get it
I figured I would make sure I could get the money before I made any offers. There has been another interested buyer and the farm was suppose to be sold, however, they have not came up with the money yet. He did have a realtor with the last guy but their contract has ran out and I believe he has lost his patience with both of them. At this point he said he would wait until he hears from me before he pursues other options.