| w1891 - 4/16/2025 06:41
How much of an allowance are you making for productivity gains? Would it be a better calculation to base it upon income the acre returns rather than a pure bushels of corn as that acre can raise more corn than it did in 1980?
Edit: In 1980 locally 100 bushels was a decent crop. Price would have been roughly $2.25. Today that number is 200 bpa @ $4.50. So gross returns are $900/acre vs $225 45 years ago. Still, if a guy strokes a check for it, it’s still gonna take x of the first bushels that acre produces before he gets his initial purchase price back. Whether that’s in 12 years or 18, the only variable would be time value of money. Getting his money back in ten years is worth something for sure vs 18. For illustrative purposes only to demonstrate my point, of course there is production cost to raise that bushel.
Edited by Boone & Crockett 4/16/2025 08:04
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Gold is on a tear
