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Washington county Kansas | Very good analysis by Green Acres Guy. This is how I have approached budgeting and enterprise analysis since I started farming in the mid 80's. Shrink, opportunity cost, and the time value of money and assets always need to be considered. Margin calls suck, but in a proper hedge they are not really a cost, except for the interest on the margin money. The OP did well with his soybeans, but could have just as easily been selling them out of his bin for $2 less than the harvest price.
If you have the financial ability to fill your bins and gamble, then his plan is fine. | |
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