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Veteran Advisor
Posts: 1,728
Registered: ‎06-30-2010
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Re: Idle curiosity question of a non farmer

[ Edited ]

Sorry, but the magic depends on price AND yield, and yield isn't determinable until after essentially all of our decisions and most of our expenses are known, when harvested.

 

Based on that statement, if a guy says he needs $3.00 corn based on a yield of 180, then it follows that $540/acre gross covers him and a yield of 180 realistic. Staying with that logic, then if his price outlook drops to $2.50, then he needs a yield of 216, which might not be attainable, beyond his control.  Similarly, if his yield outlook drops to 150, then his desired price increases to $3.60, which might not be attainable, especially if he has already locked in a lower price based on his earlier projection.