Posted by JD Seller on January 05, 2015 at 22:14:32 from (208.126.198.123):
In Reply to: losing money posted by LAA on January 04, 2015 at 20:58:59:
Quoting Removed, click Modern View to see
LAA I just assumed you where responding to Brian's post.
We have all our yards FULL of cattle. Even with that we can only feed about 1/3 of the corn we produce. Well I should say the boys can't. I usually feed 75% of my corn.
The pasture we have has my brood cows using it. You can't jump in and out with them.
The boys will be able to make a profit in the next few years. They are doing things that many are not:
1) They do not have a single acre rented for anyway near the $500/acre some of the locals are giving.
2) While they have good equipment none if it has been boughten new. Most of it needed work to make it into good equipment.
3) They are hedging the price of the corn they will produce. They have a solid floor under their corn with cash contracts coupled with options to protect them if the market swings wildly either way. They will not hit the very high prices but they will not hit the very bottom either.
4) They are not just starting out either. There are few ways to work into farming these days without outside help. That can be your family that farms helping or a good outside job helping the cash flow.
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