Posted 7/26/2006 15:22 (#30079 - in reply to #29916) Subject: RE: 300 acres to rent, what would you do?
I sure wouldn't do my calculations based on $3. Nice gravy if it works out but you had better plan to make it work @ less. As someone still low on capital I am not comfortable selling too much-too much risk of getting burned on something I can't cover. I wish I had more guts to sell more than 75% before harvest but just not in me.
Last year local elevators were running out of storage-they were actually shutting down until trains could get in. Part of it was Katrina caused but point still holds. ONLY way to move corn was to put it in your own bin (which I do not have) or sell it across the scale to ADM. It hurts me to say I had to sell 2 semi loads at 1.68!!! LDP was nice but glad I didn't have any cashflow projections based on $3 or I would have been in a heap o trouble.
Some stuff in farming you just can't plan for no matter how hard you try-so I would err on the side of conservatism-especially the 1st couple years.