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Return on equity as a farming operation matures
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happyfarmer
Posted 11/27/2015 17:33 (#4922748 - in reply to #4922001)
Subject: Your 5% ROE # is pretty accurate.....



Casey Iowa
I never run ROE or ROI or any other #'s like that. I know our costs per acre and net per acre.....those are very important #'s to me. But I just ran a really quick 1 minute to do ROE for our entire farm and came in between 5-6% for this year. The thought of renting out has crossed my mind, but renting and buying ground is how our farm grew so renting out would go against the business model.....I suppose maybe there would be a short time frame where that might be smart to do, but I think hiring custom work would have a better ROE for the entire farm than simply renting out.

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