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breakeven in farming
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thor
Posted 3/3/2010 11:18 (#1102930 - in reply to #1101834)
Subject: RE: $135 for wheat without equipment costs


northern MN

Byron, What about Depreiciation, Insurance, Interest, Repairs and storage costs. You nor any of us can operate without a profit, I know we often do. The guys that bid the heii out of the rents must live on another planet if they think or better yet if their banker thinks they can make it by doing more. I am truely disgusted with the mentality of some including some who regularly contribute to this site. There have been several posts about rents and being aggresive but what you have described is the reality of agriculture for many of us. I am cash flowing a $57/ac loss with 55bu at $4.75 and my landowners want more cause some dumb a$$ thinks he can do it cheaper or better.

There are educated people that have no shame to come here and tell us to be aggresive and pick up more ground bidding out all profit. Worse there are some here that think if we rent land cash flowing a profit it is like we were receiving a gift from the landowner. I would agree that rents should be at a level where If one is at least average you should cash flow a break even on actual costs and make our retirement during the above average years. Unfortunatly now the landowners want a bonus in those years.

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