Your numbers look very accurate to me Gary. I don't know why some farmers say they always lose money. I do, however, know why we couldn't (or maybe wouldn't) pay that much for rent. To assure $5 per bushel you would need to contract 150 bpa right now. That sounds like risky buisness to me. I would not recommend forward contracting more than half of your projected yield to anyone. I've seen guys get in big trouble this way. I doubt we're looking at 300 bpa ground. We had a terrible hot dry summer here last year. Corn was half a crop. Say this is 200 bpa ground. Grower forward contracts 100 bpa for $5. Has a bad year. Corn does 150. Price at harvest is $4 per bushel. He ends up losing $50 per acre, if he sells remaining grain at harvest. He could play the market and recoup, or lose even more. If he had 75% APH coverage (which would be costly and not figured into inputs in this scenario) he wouldn't get a dime from the insurance man. Sounds like a lot of money for grain farming. Maybe he is a vegetable grower or perhaps need manure rights.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Measuring with Calipers - by Staff. The legs of inside calipers are curved outward at the extremities to facilitate measuring small holes, while outside caliper legs have a large curve inward to increase their capacity for large work. Firm-joint calipers are adjusted approximately by the hands and then set to the feel of the work by tapping them on a metal surface. It is a common practice when opening calipers by this means to tap the top of the joint. It is better, if possible, to tap the inside of the legs, as repeated blo
... [Read Article]
Latest Ad:
Late 50s early 60s international harvester 560 with cultivator
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
