Reply
Senior Contributor
Posts: 617
Registered: ‎04-09-2013
0
Accepted Solution

Idle curiosity question of a non farmer

[ Edited ]

Hey BA (and any other farm bubbas or bubbettes who go out everyday in order to go do the voodoo that you do so well.), 

 

This is a somewhat complex business question, so maybe I am really looking less for an exact price than I am a price range. Okay, so here it goes: What is the price range of corn and/or beans/bushel that makes the entire farming endeavor worth doing?

 

Let’s assume we are talking about a successful veteran farmer with >10 years of running his own show. Let’s also assume he or she is farming >500-1000 acres of +80 CSR2 (i.e. Iowa) farmland.

 

Given your known land rental rates, your fuel/fertilizer/labor/machinery expenses, as well as your annual insurance and taxes; how low must the commodity market go on a given year’s crop of corn or beans before it begins to break the farmer’s business model? Is it $3.50 corn? $3.00 corn? $2.00 corn?

 

This is not a test and I am not expecting a specific answer, really only a price range SWAG. 

Spoiler
Spoiler