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2 weeks ago
with the belated report out tomorrow. We'll see how that goes but with good weather now dominating SA I don't think there's a lot that can help.
These crop budgets don't include the Stormy payments but they're pretty ugly.
Basically, on lower productivity land you can barely afford to farm it if they give it to you.
2 weeks ago - last edited 2 weeks ago
noticed there is not line item for the following:
Rent... evidently your supposed to own free and clear all your land
Taxes... where is the line for real estate taxes with amount to 25 to 45.00 an arce at least and/or property taxes....
Living expenses,,, we all know farmers don't eat.. or buy groceries
I just wish I could cover my farm with all the insurance that is needed for 12 per acre... Liability, and property insurance... noticed crop insurance is in at 24 which is pretty close.
they don't include them in the inital totals in order to mislead those who aren't farming as to 'pofitablity' in the ag sector
2 weeks ago
YEAH! Well the last line gives you the total you can pay for rent. I don't see many landlords going there. Maybe some, but cash rent got to be a gravy train and it is hard to get away from the buffet. When land was bought, I guess the 300-400 rent was going to be there for eternity. Pay $400/acre and it doesn't appear you would be farming long, well unless you had won the lottery.
2 weeks ago
exactly.... just saying the picture looks pretty bleek right now...guess the loss of the export market to China has no affect this year... take away part of the demand and look what happed truly believe that the markets were headed down anyway but the tariffs just sped things up..
last year i had the opportunity to market at least part of my production at a profitable level (which I did) but with the hard line stance that no additional payment is coming this year and the lack of profitable marketing opportunites make things look pretty bleek right now...
2 weeks ago
That is bleak........ the half that goes to land won't pay the property taxes.
The half that goes to operator won't pay anything.
Both sides should qualify for food stamps and maybe a industrial hemp permit....
This morning the RFDtv discussion and film from Australia on our new "switchgrass" ploy from usda..... Industrial Hemp....?? Now there is another winner .........
If that had been made the centerpiece of the state of the union speech I would have destroyed a good TV like i did for the "cellulosic" moron.
a week ago
There probably is a neighbor, maybe even a BTO with good looking sons, that is looking for some more land, too. Might take a few years to get the land back into shape, but a good operator always seems to find a way to make it work. You usually have to budget double dry fertilizer expense, and extra chemical expense to reclaim the fields from weeds, etc for the first few years but I have reclaimed land like that myself, and got it back into top production. Challenges make life more interesting. The markets might seem brutal, but they treat everyone the same, up and down. Seems like a better system than having some government employee determining how much CSP to pay to keep a marginal operation cash flowing.