TeeJay,

A lot of CRP is in unfarmable areas (too low or poor drainage). It has taken out some of the
marginal farming land that probably should not have been farmed in the first place.
Are there moochers, well it's a government program, aint it?

That's about it...we have a few acres enrolled and there's pheasants galore!!!

Believe me teeJay - farmers are not the lazy suckers you think they are. You try living on welfare and paying bills - that would be easy compared to what farmers get from CRP payments

I'm with Mr.G on this one. Where I live CRP is in the program for a reason, poor soil quality. CRP pays on the quality of soil.

For example. We have some alkalie that is in CRP. Average CRP rates around here are $32 an acre. This price does not include the planting cost (some but not all), noxious weed control, etc.

First there is the initial planting of CRP.
$22 an acre for seed x 160 acres = $3520
$12 an acre for fuel/planting x 160 acres = $1920

So before you collect a check from the government for doing NOTHING there is $5440 out of your pocket. The Government does cover some of the planting cost, but not much. I can't recall off the top of my head, since its been a few years since I planted CRP.

Then...
$32 x 160 acres = $5120 a year in CRP Payment from Government.
$12x 160 acres = $1920 a year in weed control.

So an average year after initial planting puts you at $3200 profit off a quarter of land....

BUT THEN, you get a letter from the government after a wet spring, your initial spraying didn't control the noxious weeds, so you have to hit them again, only harder this time at $15 an acre.

$5120 Payment
-2400 second spray

So you are making $2720 a quarter of landnow. Do you really think that is worth it to a farmer? I think not.

I almost Forgot.

Cost 5440 the first year of planting/establishing, and you collect a check for 3200. So the first year you LOSE 2240 dollars. So, it will take 2 years before you make any money on that quarter of land.

Just for fun we'll take this one step further....Lets say the farmer decided to plant this land to corn for a year.

We will plant Dekalb 5020 Triple Stack @ a fair price of $160 a bag.


$64 an acre Seedx 160 = 10240
$13 starter x 160 = 2080
$3 fuel x 160 = 480
$11.75 Roundup x 2 passes x 160 = $3760
$25 Urea x 160 = $4000
$18 combine/truck x 160 = $2880

This is actually a very underballed estimate of total cost considering what the price of phosphorus, and nitrogen are doing at the moment. It tallys up so far to $146.50 an acre to plant corn.

146.50 x 160 = $23440 to plant the crop
Now if you figure in current costs
196.50 x 160 = $31440

Now lets say you had an OK year on the alkalie soil and averaged 100 bushel across the 160 acres. Current market price is $3.40 for a bushel of corn. Realistically at harvest time it will be well below that mark.

So you end up with a total of 16,000 bushels.

16,000 x 3.40 = $54400 Gross
-31440 Cost an acre
$22960 Net/acre

16,000 x 3.40 = $54400 Gross
-23440 Cheaper planting costs
$30960 Net/acre

This is just a quick example to show you what it actually costs a farmer a year to raise a crop, and at best odds what he will make off one quarter of land. This is figuring you own the land. Now lets figure that you don't own the land and you have to lease/rent the land.

Lets say $50 an acre cash rent on land thats good enough quality to raise a crop of 100 bushel. This is a very low estimate mind you.

50 x 160 = $8000/rent

22960 - 8000 = $14960
30960 - 8000 = $22960

Hope you guys didn't get bored with my rambling. Just going to show you that farmers don't get rich from CRP. I should also note that this does not include wear and tear on farm equipment, repairs, deprceciation, etc.

So Rammer do you have any ground in CRP?

Sure do.