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Subject: Market Farming
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Re: [Market-farming] Cost of land as % of gross sales?
- From: KAKerby AT aol.com
- To: market-farming AT lists.ibiblio.org
- Subject: Re: [Market-farming] Cost of land as % of gross sales?
- Date: Tue, 21 Dec 2010 22:59:29 -0500 (EST)
We have roughly the same rates out here. I'm currently in
negotiations to rent a very fertile, flat 14ac parcel for $100/ac/year for 2011,
going up to $150/ac/year in 2012, then a cap at $200/ac/year from that point
forward once we've been there and gotten all our infrastructure set up and
rotations going. This is close in land (within 5min drive of city of
200K), easy access, no power to the property but irrigation water via irrigation
ditches. Probably a lot less $$$/yr than your
property owner has in mind. Additionally, my income
per acre per year would be drastically different on that parcel, depending on
what I grow there - small grains, grazing meat animals, grazing dairy animals,
hay, farmers market vegetables, wholesale, or some combination. So I'm not
sure the % of gross sales would be a good yardstick.
I'd be curious to know if that $150/ac/year rate is consistent in a lot of
other areas, and whether it goes up for parcels actually within city
limits. The parcel I'm negotiating for is real darn close to city
limits, so our rates probably aren't that different. Only the
permitted activities. You might also look at what's permitted on an
in-town parcel that's so much bigger than what you're used to. Size can
change what's permitted and what's not.
Keep us posted - I'm not involved in urban ag per se but I've been watching
it evolve over the last few years. There's some pretty exciting stuff
going on in some cities nationwide. A big hearty round of encouragement
for your efforts.
Kathryn Kerby
frogchorusfarm.com
Snohomish, WA
In a message dated 12/21/2010 7:24:00 P.M. Pacific Standard Time,
elainegranata AT msn.com writes:
Sundari: I tell such people that organic ag land goes for about $150.00 an acre per year -- that usually slows them down. If you pro-rate whatever percent of an acre his yard is you could come up with a number based on the $150 which I suspect will be a lot lower than what he thinks it's worth. |
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Re: [Market-farming] Cost of land as % of gross sales?,
KAKerby, 12/21/2010
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Re: [Market-farming] Cost of land as % of gross sales?,
Road's End Farm, 12/21/2010
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Re: [Market-farming] Cost of land as % of gross sales?,
booldawgs, 12/21/2010
- Re: [Market-farming] Cost of land as % of gross sales?, Mike Rock, 12/21/2010
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Re: [Market-farming] Cost of land as % of gross sales?,
booldawgs, 12/21/2010
- <Possible follow-up(s)>
- Re: [Market-farming] Cost of land as % of gross sales?, SaladG, 12/22/2010
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Re: [Market-farming] Cost of land as % of gross sales?,
Road's End Farm, 12/21/2010
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