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rpron

Posted 4/26/2024 20:32 (#10719335)
Subject: Crop budgets

Cole the corn star on you tube was posting how there 2,000 acre corn and soybean farm. Is projected to loose a half a million dollars this year. That is a lot of money per acre. How real are his numbers ? You can watch on you tube. I farm in Canada so our numbers are way different.

T-rowe

Posted 4/26/2024 20:35 (#10719345 - in reply to #10719335)
Subject: RE: Crop budgets

North central MO

He’s an idiot, it’s all for show so people will watch his crap no different than whistling Dixie.

Indrtfmr

Posted 4/26/2024 20:39 (#10719353 - in reply to #10719345)
Subject: RE: Crop budgets

NW in.

Doesn't surprise me, what they spend on machinery and grain bins on a 2000 acre farm is ridiculous.

mosinee dave

Posted 4/26/2024 20:47 (#10719369 - in reply to #10719353)
Subject: RE: Crop budgets

Mosinee Wi

Save money don't plant

rpron

Posted 4/26/2024 20:53 (#10719383 - in reply to #10719369)
Subject: RE: Crop budgets

Sometimes some things I grow end up loosing some money. But not a 250 dollar acre loss across the whole farm.

r82230

Posted 4/26/2024 21:52 (#10719502 - in reply to #10719383)
Subject: RE: Crop budgets

Thumb of Michigan

rpron - 4/26/2024 20:53

Sometimes some things I grow end up loosing some money. But not a 250 dollar acre loss across the whole farm.

You only lose 1/2 mil at $250 an acre, you need to lose $500 an acre to lose $1mil on 2,000 acres if my math is correct. Perhaps they bought a lot of acres at $20K+ per acre.?

dirtclod10

Posted 4/27/2024 17:57 (#10720456 - in reply to #10719502)
Subject: RE: Crop budgets

He said 1/2 mill

deflep

Posted 4/27/2024 05:39 (#10719650 - in reply to #10719353)
Subject: RE: Crop budgets

I don't understand how a 2000 acre farm could be full time work for 5 people. They don't even do their own trucking.

GS2

Posted 4/27/2024 06:50 (#10719716 - in reply to #10719650)
Subject: RE: Crop budgets

North Central US

deflep - 4/27/2024 05:39

I don't understand how a 2000 acre farm could be full time work for 5 people. They don't even do their own trucking.

5 people work there full time? We do more than that and livestock with only two of us and still find things to do.

deflep

Posted 4/27/2024 07:42 (#10719793 - in reply to #10719716)
Subject: RE: Crop budgets

That’s what Cole said in last video.His brother, dad, 2 other guys and himself.

PhilToddCo

Posted 4/27/2024 09:59 (#10719985 - in reply to #10719716)
Subject: RE: Crop budgets

Osakis,Mn

They also go grave digging for more than a dozen cemeteries in their area. That can take time and interrupt you during planting and harvest time.

jeff gordon

Posted 4/27/2024 07:21 (#10719763 - in reply to #10719650)
Subject: RE: Crop budgets

Mather, Manitoba

That include camera operators and video editors?

blden

Posted 4/27/2024 08:08 (#10719825 - in reply to #10719763)
Subject: RE: Crop budgets

West Central IL

Now that makes sense. Otherwise 5 full time guys seems like a lot.

hinfarm

Posted 4/27/2024 09:19 (#10719912 - in reply to #10719825)
Subject: RE: Crop budgets

Amherst WI

2 cameramen, sound guy, executive director, movie star

Who's left to do the farming?

deflep

Posted 4/27/2024 12:13 (#10720157 - in reply to #10719763)
Subject: RE: Crop budgets

Not sure, but I thought he said the video editing is done by a third party

Dutchman

Posted 4/27/2024 07:14 (#10719751 - in reply to #10719345)
Subject: RE: Crop budgets

West Central Illinois

I agree with T-rowe on the idiot part.

Jrggrain

Posted 4/28/2024 15:40 (#10721522 - in reply to #10719751)
Subject: RE: Crop budgets

Pisgah

ryan elias

Posted 4/26/2024 21:18 (#10719439 - in reply to #10719335)
Subject: RE: Crop budgets

chortitz, manitoba

You can adjust the numbers anyway you want. Factoring in depreciation and also factoring everyone's wages at $60/hr.

Reality speaks

Posted 4/26/2024 21:24 (#10719452 - in reply to #10719335)
Subject: RE: Crop budgets

n. Illinois

Cole is attempting to show the financial realities of a corn soybean farming operation without disclosing too much of their personal info so he can continue to have people watch his Youtube channel which I would guess makes them way more money than farming does.

jdironman

Posted 4/26/2024 22:24 (#10719532 - in reply to #10719452)
Subject: RE: Crop budgets

Nw Iowa

I would bet that when most figure depreciation and family living, health insurance and all costs like some of the business programs do, most would be shocked how this years numbers look. Here there is a farm business management program sponsored by state university called adult farm management that does accounting for a lot of area farmers, this years numbers were pretty bleak. That includes a lot of guys that have very little debt and a lot of net worth. Take 8- 10% depreciation on farm equipment, 2-4% on your buildings and tile ( how a business would do it, you wrote all these improvements off and they have a life expectancy like any thing else) and see how it looks with 4$ corn. I realize I will get flamed but it would be normal business accounting.

sparkiefarmer

Posted 4/27/2024 05:24 (#10719646 - in reply to #10719532)
Subject: RE: Crop budgets

Melancthon, Ontario

I agree with you 100%. Farmers on average cant do basic math.
Guys around here are acting like we have 2% interest and $9 corn.

hinfarm

Posted 4/27/2024 09:23 (#10719917 - in reply to #10719646)
Subject: RE: Crop budgets

Amherst WI

Paid for land can cover a lot of sins.

If you take a 1500 acre farm for example and look at equipment lineups it's not uncommon to see a $1M+ difference. Is the operation on the higher end making $100K+ a year more to recover interest charges and depreciation? Probably not.

sand85

Posted 4/26/2024 22:39 (#10719545 - in reply to #10719335)
Subject: RE: Crop budgets

C IL

I happened to catch part of that video for some reason, he said he was budgeting $290/ac land cost for all acres whether owned or not, and if I recall correctly marked harvest prices to current fall forward prices.

Assumed 9% operating interest and little working capital.

Appears to be fairly well equipped with machinery and farmstead improvements with what I assume is are hefty actual or economic assumed depreciation and debt service costs.

Probably not an unrealistic accrual economic analysis, but the actual cash returns are likely different due to market changes and previous decisions that affect current cash and market positions.

Seems like plenty of $7 hangover marginal and debt service costs are blowing up cost of production this year in the ag sector, and there is still a mighty cash pile out there that suppliers are competing to grab from producers.

Excalibur

Posted 4/27/2024 00:06 (#10719598 - in reply to #10719335)
Subject: RE: Crop budgets

SC WI

I need to watch the video, but his last one I saw on budgeting, he used a lot of average numbers. Showed a loss, but then showed how better marketing, better yields, or lower cost of inputs can get a farmer in the green.

Little papa

Posted 4/27/2024 05:31 (#10719649 - in reply to #10719335)
Subject: RE: Crop budgets

Hooker Twp,Ne

Hope he has his operating loan for this year. Else he may need a sharper pencil.

Cliff SEIA

Posted 4/27/2024 08:24 (#10719849 - in reply to #10719335)
Subject: RE: Crop budgets

With as many followers as he has he is probably bringing that half million dollars in from YouTube and if that's the case he needs the IRS to believe the farm is loosing that much to balance it out.

Mike_N

Posted 4/27/2024 09:26 (#10719921 - in reply to #10719335)
Subject: RE: Crop budgets

Michigan

I watched the video. Usually I avoid this stuff--I don't even like watching youtube videos to learn out how to fix something--way too much talking, drama, and bs. Especially when they break out the torque wrench and take 10 minutes to tighten a non-critical 3/8" bolt that anyone who wrenches stuff can snug up with the cordless impact just by feel/sound.

With that said, I think Cole did a good job of laying out the numbers. Land expense is probably the area where there will be the greatest variability between farms but I can see why he used $279/acre. Seed, chems, fertilizer, insurance, and fuel all seem reasonable. As far as machinery, I only watched this one video and have never seen this guy before, but it looked like they had a nice, normal size size shop, a 4840 hooked up to a planter, and that Massey is 20 years older than Cole. Am I missing something?

Bottom line is that we produce commodities. Commodity prices go up and down. Being a low-cost producer has always been important in commodity industries, whether it be agriculture, mining, or manufacturing. Deere (and others) spend a lot of money trying to convince all of us otherwise. Seems like Cole's just pointing out that the cost side of our business is important.

-Mike

6030Deere

Posted 4/27/2024 10:40 (#10720044 - in reply to #10719921)
Subject: RE: Crop budgets

N MO

You missed the Case 380 and 24 row planter. The 9230 combine and 2 Hagies. Also the bin set up that they can’t fully use and are in a lawsuit over.

Mike_N

Posted 4/27/2024 11:02 (#10720065 - in reply to #10720044)
Subject: RE: Crop budgets

Michigan

Yeah, that’s a big miss…

I’m a generation older than him and I didn’t just read about the ‘80’s, I was there. There are similarities and differences but this arms race in machinery has really got out of control for a lot of operations.

jdironman

Posted 4/27/2024 12:17 (#10720162 - in reply to #10720044)
Subject: RE: Crop budgets

Nw Iowa

I am not defending anybody at all as you put out videos to the public, you are under a lens and better be tough enough for the criticism but most if honest about their own operations have plenty of things if open to public scrutiny would also be viewed negatively. I really think he is trying to educate the public that farming is not a guy with a straw hanging out his mouth anymore. His numbers are pretty much in line with what our local farm management seen if everybody honest about their costs and depreciations and put what fair rental would be on their land even if paid for could rent out for. Most of the time cash flows are using given expenses and depreciations and using a conservative price and yield so normally are on the thin side. How many of you guys do a honest cash flow before season with all actual depreciation and overhead costs?

sand85

Posted 4/27/2024 12:59 (#10720211 - in reply to #10720162)
Subject: RE: Crop budgets

C IL

Who would dream of writing that down on a piece of paper that your wife might actually see? We would all be forcibly retired from farming and competing to work at Dollar General where you would actually net some gain this year …

farmdude

Posted 4/28/2024 06:19 (#10720820 - in reply to #10720211)
Subject: RE: Crop budgets

I like all the farm youtubers.They tell there story in a unique way.Cole really broke down all the financial details off farm finances that is just a realistic but tuff part off the farming business.The average person can get a good idea off what it takes to run a farm operation.Sonne farms farms how a cow calf operation operates an everyday challenges.And off course Zach millinial farmer.The guy that impresses me on every video he makes.His last one blew me away an his best one yet.What a giving guy he is.Thats Zach for you.What a big heart.

timis

Posted 4/28/2024 07:58 (#10720918 - in reply to #10719335)
Subject: RE: Crop budgets

Iowa

I think their numbers are pretty close. Someone posted on market talk a couple months ago some of the university budgets - they had break evens in the 5.20 range. When I looked at their numbers the big thing that stood out was equipment cost. If you’re buying and making payments or leasing the equipment cost/acre has gone up a lot. Now if you are simply using the same paid for piece of equipment there’s no change.

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