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Return on equity as a farming operation matures
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coochief
Posted 11/28/2015 09:30 (#4924123 - in reply to #4923443)
Subject: RE: ricefarmer14, you need to expand.........


SE MT

That was a classic Clay, even so much so I had to go look it up.  You left out the Gunpowder, lol.     You have to watch those Pool boys too!

5Lock:   "I would reek of expensive Scotch, gunpowder, Jet-A, and whatever kind of perfume Brazilian swimsuit models wear."

 

Rice, the problem with percentages on ROE's, ROI's, etc...   is that they can be so skewed so much and it depends greatly on what kind of values you place on your assets.  I love numbers and I've had the city folks ask me what kind of returns I get in this farming industry and its really kind of hard to answer, so I just throw a dummy number out.  Most corporate business's figure returns on a After taxes basis. Farmers we usually figure it before. 

We all pretty much know if we've had a good or bad year without crunching a bunch of numbers at the end of the year.  And, the easiest way to tell usually is:       Do I have lots of inventorys on hand, do I feel pocket heavy, could I go write a check for a new pickup, could we take a 10 day cruise....      or the opposite:  Oh crap the bins are empty, how am I gonna get the payment made right after the first of the year,  Christmas is going to be pretty lean,  I can get one more winter out of those tires....          I've seen both ends of this over the years too!         

So I guess if your body aches and you don't owe much money and could make a great living off of your cash rent income after taxes and you are in your 60's. You better go enjoy yourself a little, also do you have any children or family interested?  

  I've never seen a :



Edited by coochief 11/28/2015 09:33




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