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Community Manager
marketeye
Posts: 2,901
Registered: ‎05-03-2010
0

Farming with drones

Do you see the benefits?

 

Here's a link to a story that I read on Wsj.com:

 

Drones

 

Would you invest in one?

 

Mike

Veteran Advisor
Mizzou_Tiger
Posts: 2,183
Registered: ‎11-02-2010
0

Re: Farming with drones

we are a product of our own evil ways............

 

we have become so efficient with producing crops we have lost touch with managing an acre..............we manage on the averages, usually 40-80-160-640 at a time............

 

it begs the question I have asked here before...............its it better to drag 15K pounds across a field every 20-30 feet............or drag 80K across a field every 60-90 feet...........and in some cases like the combines and grain carts these days we are dragging 80K-100K across the field every 30 feet...............

 

I contend our constant desire to get over more acres with less or the same HP and people is one of many things killing our trendline (IMO its already dead, but will take another 10 years for people to figure out)..................

 

throw in crop insurance to the mix.............and bam..............the focus on managing an acre at a time is all but lost

 

and for good reason, why should we.................your risk is covered with insurance so now its about how big and fast can we go and hope the gamble pays off.............

 

AND THUS MY POINT FOR MANY MANY YEARS NOW.....................

 

the risk/cost of production has to match the reward...............thus if we take crop insurance away the price of grain would probably stay were its at or actually go even higher.................and if we employ drones to start managing on the acre, cost of production would go up, thus the reward has to be there...........

 

we are no longer in a cycle of growing WAY TOO MUCH.................we are now in a cycle were for a year or two we might grow too much, for a year or two we will be short, and for the meat of the curve we will be barely comfortable.................this changes the dynamics of the grain market..............and it changes to something we are fairly unfamiliar with.............which is why many of the ole stand by ways of thinking about the grain market have not worked...........

 

so bring on the drones as they may be our only hope of busting thru trendline, course then there is this thing called ROI.................o boy, now what................gotta pay for all that extra fertilizer to make that yellow clay knob grow anything.............gotta pay that irrigation bill to make that arid flat grow anything.................gotta pay that drone bill to manage my mega farm.............

 

question for you marketeye, if corn goes to $4 or even $3................what happens to acres and production.............I have my idea of what will happen.................acres will disappear overnight, by 10's of millions.................o and that extra shot of N or fungicide or whatever will not happen...................

 

PEAK PEAK PEAK PEAK CORN CORN CORN CORN..................

Senior Contributor
rswfarms
Posts: 1,377
Registered: ‎12-17-2012
0

Re: Farming with drones/Corn cost per bushel/Net Profit per Corn Acre

Tiger- I see you brought up ROI's, my favorite topic in farming, I live by my ROI Ratios!!!!!!! Anyway, in northern Iowa I can grow a bushel of corn for around $2.65 per bushel, and this includes my Custom Farming Cost of $150/acre. This is using a 205 to 215bu yield, which is pretty standard for us now, even 220bu is well within the ballpark. Of course my $2.65bu corn cost only has a $23/acre In Iowa Property Tax as the only FIXED/LAND Cost. If a guy was paying the going $500/acre cash rent, his total both variable and fixed costs per bushel would be  $5 per corn bushel. $500/acre cash rent would add $2.38 per corn bushel to the variable cost of $2.65, so a total cost of $5.03bu. With new crop corn in my area for Fall Delivery at around $5.35bu, the total numbers per acre works out to a very ROUGH per acre profit of $70/acre. A huge difference from our 2012 per acre net profits. But it really boils down to the fact that the guys that own and have all there farmland Purchase Loans paid-off, there net acre profit is around $581/acre at a $5.35 corn selling price. If I was paying $500/acre in cash rent, I would be a little uncomfortable with just a $70/acre profit, it leaves very little room for a margin of error. But Tiger, your question on what will happen to corn acres if we see $3 to a $4 new crop corn prices for Fall Delivery, well, the net profit numbers I posted could be helpful on this issue.

Senior Advisor
sw363535
Posts: 4,021
Registered: ‎07-18-2011
0

Re: Farming with drones

The future has increasingly amazing potential  and  --------------------------- absolutely I would invest in the idea if it meant greater productivity and dependability.  

Liability looks like a problem-------- but we already have most of that liability and without a pilot, the liability might be less.

 

Automating human labor has been on a 80+ year march, I don't see it stopping anytime soon.  

sw