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Ownership,COP, and weathering the storm..
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pigfarmerj
Posted 2/11/2016 08:45 (#5103557)
Subject: Ownership,COP, and weathering the storm..


nw illinois
PatH post below really got me thinking about commodity production. Just going over some income projections and the picture seems much brighter on the owned vs. rented ground and the owned ground seems like a pretty good deal cash wise right now DUH. What I wonder is if the magazines in the early nineties pushing rent not ownership were really wrong or is my management much more suited to ownership.

I realize that in my farming operation I am maybe giving up some potential rate of return in this down cycle by not renting it out now, but by the same token I got it all during the meteoric rise in prices. I had a BTO that I know was flying high in the late 2000s that told me the future would be renting my ground out to him. I am still farming, he is not.

We continue to see positive cash return because of ownership both in grains and livestock because of paid for facilities and land. we are not the biggest operation but are growing slowly and steady.

Is land ownership a better way to go in commodity production or is it better suited to my management? Flame away.
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