Alberta Farmer - 8/29/2016 13:38
By the charts, if one binned grain(say corn) off the combine every fall, waiting for a better price, what is the longest period that it would have to have been stored to at least get back to even? Throw out the raging bull market years, since that is easy to figure out, only in flat or long term downtrending markets such as this. Is it months, years, decades? In my short lifetime, it seems that there is always an opportunity to do better than breakeven within a couple of crop years, not considering the opportunity cost and storage etc. Are the odds against storage?
Who's breakeven? A farm with mostly rented ground has a much different BE than one with all owned ground. And what do you include in your BE number? Do you get paid for your time? Living Wage? Health Care? Do you include any gov payments? Point is here you see so many different ways to calculate your breakeven. I personally don't think the question can be answered reliably.
Storing during bear market, what is the longest time for breakeven historically?
