Posted 3/23/2015 23:14 (#4473192 - in reply to #4473146) Subject: Someone do the math
Central Iowa
Lets say the Fringe farmer has a basis of -.60 corn. Lets say the Iowa farmer has a basis of +.05. If the fringe farmer can consistently grow 140 bushel corn and futures are $4 minus his basis he has $476 in revenue. If the Iowa farmer can consistently grow 190 bushel corn plus his .05 basis he has $769.50 in revenue. The Iowa farmer would have $293.50 more to spend on land costs. Lets say his rent is $300 an acre, can you rent fringe acres for $6.50 an acre?
Trying to Understand the thinking behind this
