Southern Highlands of Tanzania, East Africa | Here's my scenario... I've posted before but now have better numbers at hand.
Farming in Africa, excuse my use of hectares.
A corn seed company who lent us money to build my own farm (280ha of towable valley pivots) have secured land nearby which again is exceptional quality and have cleared a tree line and put on 200ha of pivots with power and pump houses complete. Fully installed and ready to go, they have spent $1.5m to get the show ready and have offered me to rent this 200ha for $100,000 per year ($500/ha/yr) over the next 15 yrs.
Now, for the numbers.... we should net $1,500/ha before this rent with our seed corn.
The also help finance inputs and are offering to put a drier in (to keep the seed quality up and could allow us to grow a second crop of wheat in one year). We would have to pay the drier off during 5 yrs, so say an additional $50,000 a year for the first five yrs.
Feels like a good deal to me but am I missing something? What does good land and pivots hire for in the US? |
How should I feel renting good land with new pivots?
