HeyhayJCM - 9/3/2015 11:10
billw - 9/3/2015 11:03
Lots of stuff to spend money on to try to make some money (profit).
If you're figuring costs for land that you own, you can cross out the Cash Rent expense, but don't overlook the Property Tax costs. Whether or not you're figuring it in the COP, you're still going to be paying the taxes, and in some states the property tax cost per acre is so ridiculous that they exceed the majority of the various input costs.
Shouldn't you have to at least figure in a land charge equal to what you could rent it out to another farmer for??
If you don't aren't you fooling yourself on the thought that you are actually MAKING money??
What I am trying to say is that if you make 100.00 an acre without a land charge on owned land...but you could have rented it to some other cowboy for 200.00 an acre ....you actually lose 100.00 an acre from a business standpoint.
At least that's what my banker says and it makes sense to me.
Josh Moorefield
Moorefieldhayfarms.com
Crop costs
