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Nebrfarmr
Veteran Advisor

Re: Wow! 160 acres in 3 1/2 hours

It took me more than 3 1/2 days to pick 160 acres of corn.

The speed of that, is just overwhelming.

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GoredHusker
Senior Contributor

Re: Wow! 160 acres in 3 1/2 hours

What I've learned about BTO's is this: any agribusiness makes very little money on them.  For starters, the BTO basically wants to buy all of his inputs at the agribusinesses cost.  Therefore, very little is made.  An agribusiness can make more money servicing 20 smaller farmers on inputs than they can one large BTO farming similar ground.  Also, the BTO is a lot more inclined in a poor year to pay a fraction of what they owe for inputs than the smaller guy. 

 

It's a lot like those who decide to deal with Walmart.  Schwin bicycles were doing okay.  They thought they had to deal with Walmart just to get their bikes sold.  It didn't take long before they were bankrupt because Walmart's contracts were very one sided.  BTO's seem to chase one thing which is the margins.  They purchase from the cheapest.  They sell their grain to the highest.  It's called capitalism I suppose which is why I don't understand businesses chasing their business knowing full well they could easily be gone with the drop of a hat.  There's absolutely zero loyalty, so I don't see why any business would be loyal to them.  By the way, I'm not chastizing them at all as I tend to do the same thing.  I buy the cheapest for similar product and sell to the highest bidder at the time with regards to grain sales.  However, I don't expect a business to bend over backwards for me with regards to delivering grain and such.

     

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Kay/NC
Honored Advisor

Re: Wow! 160 acres in 3 1/2 hours

It is hard to imagine a better time to hold onto land, with rents so high, other investments so shaky in general, and the low risk proposition of renting an asset you still hold as it appreciates, or at least holds even value. Why anyone would deal with tax questions on a sale, compared to the tax favorability of rental income, puzzles me. Maybe I am just slow....
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Nebrfarmr
Veteran Advisor

Re: Wow! 160 acres in 3 1/2 hours

Another possibility. The coop had a contract with the guy, and wanted to be sure it was filled. I know a guy down the road, last year who had a contract, then the price went way up, and he didn't get a lot of his corn delivered because of 'ling lines and excessive waits' to unload trucks, so he took his many thousands of bushels to another place, and sold his crop cash. They were in court, and the coop got a partial judgement, but the guy still was money ahead with the higher price. No idea if this guy would pull anything like that, just throwing the possibility out there.
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clayton58
Veteran Advisor

Re: Wow! 160 acres in 3 1/2 hours

I've never seen a contract with a clause to void it for "long lines and excessive waits".  I guess if the guy wants to sell his soul for a few $$$ thats his decision, but... I try not to do business with that kind of person. 

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Nebrfarmr
Veteran Advisor

Re: Wow! 160 acres in 3 1/2 hours

There was no clause in it for that, the contract was for 'October Delivery'.  He delivered a load, and the co-op told him it was 'too wet', and to let it dry down for a few days.  After waiting the time period that they told him to, the elevator had a leg break down, and there were long waits.  He had 'his' truck haul into that place, and hired a trucker to haul corn to a different elevator, to keep picking.  October came and went, and he didn't have enough corn delivered, but the lines were still long, so he took the rest of his corn to elevator #2.  When it was all said and done, he had somewhere around 30K bushels not delivered.

It went to court, and the elevator won a partial judgement (I don't know how much, for sure) because, yes he breached the contract, but not a full judgement, as the court felt that the farmer should not be forced to leave his corn in the field to possibly fall down, because the elevator could not accomodate the grain they had contracted.  It seems, that if you contract X bushels of corn from farmers, for a given delivery period, you also need to give reasonable opportunity for them to get it delivered.

It was one of thos situations, where I was very glad I knew the guy involved, as it kept me out of jury duty, as I think deciding who was at fault for how much, would have been a tough one to call.  On the one hand, it wasn't the farmer's fault the elevator leg broke, but on the other hand, he hired another truck, to haul somewhere else. 

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steeringwheelholder
Senior Contributor

Re: Wow! 160 acres in 3 1/2 hours

I'm not aware of the 'Co-op trucking it' stuff. Never heard of it around here. Not sure who the biggest bto in iowa is either. All I know is- 160 acres in under 4 hours is gettin' it! 3 12 rows?
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johnbkent
Visitor

Re: Wow! 160 acres in 3 1/2 hours

what is a BTO?

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dave.charlesworth
Frequent Contributor

Re: Wow! 160 acres in 3 1/2 hours

  was it 50 bu corn or 200 bu. corn makes a difference in how fast you can go  without it going out the back.

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Taylor ECIL
Senior Contributor

Re: Wow! 160 acres in 3 1/2 hours

Big time operator

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