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Honored Advisor

Re: MT C.O.P

BA just  keep drinking that kool aid.

 

Charging yourself rent is b s, try deducting that on your tax returns 

 

I live in one of those fringe areas that the race horse farmers have town jobs after a few years

 

Just can't believe I have survived and prospered doing all the wrong things.

 

As long as my health allows I have no intention of not farming my acreage

 

With costs tripple of mine and profit margins so thin you can read a newspaper through them in the bumper harvest years

Do not complain around me.

 

 

 

 

 

 

 

 

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Advisor

Re: MT C.O.P

Hobby, how are your per bag costs that low?? I'm able to get them down to 230-240, but that's not enough. Anhydrous isn't an option around here, uan is limited... So urea.
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Senior Contributor

Re: MT C.O.P

Count your blessings Hobby. Those are some low fert and herbicide costs. I understand the seed but I can't come close on everything else.
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Mifarm1066
Friend

Re: MT C.O.P

Hobby you need to figure in tillage, planting, and combining costs also

Even if you own the equipment it still costs. You have to calculate replacement of parts or equipment eventually.
Honored Advisor

Re: MT C.O.P

As I am a quarter turn off of normal or average, I use that left over $400+ an acre as a slush fund for a few of those incidentals.  Such as all the dozer and tileing machine work to add production and acres. Which just increases those left over bu's after expenses and frivolous things I do and places I go to.

 

It took 35 years to get the base built and paid for to get to this point and I have no intention of being apologetic for it.

 

Lots of my cynicism comes from my early years in farming and asking for help from the "experts" and getting either the absolute wrong answer or just half truths and lies. Some of which almost broke me. Brokers are called that for a reason.

 

It wasn't until I started on a day job that involved visiting with farmers that were being successful that the real truths and path to the brass ring showed up.

 

I have NO intention of following any "expert"* over any Buffalo jump ever again.

 

 

 

* expert = pronounced ex spurt

 

ex... = has been, over the hill, a used to be (maybe never was)

 

spurt... = a small drip under pressure

 

 

 

 

 

 

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Senior Contributor

Re: MT C.O.P

Amen on the expert thing. If I listen to them I'd be raising rasberrys and gensing. Wich may be better the next few years. A few thousand dollars gross would have sucked in comparison to what grain paid the last few years.
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Highlighted
Contributor

Re: MT C.O.P

MT has to tighten his belt he was so bullish he never sold anything ahead. Prob sitting on some from last year waiting for 8$ ..Peak corn

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Senior Advisor

Re: MT C.O.P

I guess that return on investment testifies to your investment skills and revenue minus all expenses testifies to your management skills. Thus revenues minus expenses minus the rental value of your land gives you a more accurate picture of the earnings from operations.  $300 per acre profit when $250 of that is return on investment only leaves $50 per acre for operation and does that account for depreciation on equipment and labor.

 

I used the same mathematics to determine whether I have my land custom farmed.. With the cost  of modernizing equipment or the high cost of maintence, machinery ownership became unaffordable on my small acres. That and my health issues led me to a custom farming alternative which has worked out well. At least until, now.  I don't think I need a thousand dollar per acre gross to "make it" but my income will probably be more from return on investment than operating profits.

 

Now admittedly, It probably doesn't matter in what form my income comes from as it all flows to the same place. But when i had the ford dealership they taught us to divide the segments of the business up into 4 categories. New sales, perowned sales, parts, and service. That gave you a picture of how the various segments were managed and if they were strong earning depts or if they were lacking.  Thus we had the information and could adjust where adjustments were needed.

 

Owning land and having it paid for certainly gives one a edge and with the risk plus the discipline to get it paid for makes us worthy of having that edge.

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