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Ottawa, Ontario | This is a smart dairyman and he has come out ahead on the dealings with you.
Here's why:
He was able to rent land, and then sub-rent it to you. He made some $ on that transaction.
He was able to buy feed from you at fairly low prices over the last 5 years, assuming that your silage prices were reflective of Chicago. And you took all the risks involved in production - input prices, weather, etc. You did all the work, for what may be fairly modest margins.
Now, as Chicago moves upwards, and you want more $ for the feed you produce, to cover off the opportunity costs of not selling into the market, he has figured out that his cost of production will be significantly lower than what he has to pay you for your service and BLAM...you are out of the loop.
Can't blame him....but as for the land...it's yours.
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Who is right?
