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rent, economies of size, and government payments
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Les NCKS
Posted 8/19/2007 10:10 (#189581 - in reply to #189082)
Subject: Rent vs own



Salina, Kansas
When talking about size renting and owning must also fit into the equation. If a farm is operating mostly land that was paid for by preceding generations it can generate an adequate income off of fewer acres than a farm that is close to all rented. At least in the simple world all things being equal the land that is paid for produces much more cash flow than land that has a rent payment of some kind. Both types are able to make it with adequate management but it seems that the former can acheive the same income with fewer acres.

As far as the farm program I would like to see it gone also. Can't say the money doesn't come in handy sometimes, like this year when a third to half of our income froze in april this year, but in the world of competition I think I can survive better without it than some of my neighbors.
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