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Casey Iowa | Is a good idea.
We have considered hiring custom planting, spraying, harvesting and trucking before. We have considered renting out and doing something else with our time. But in conclusion we continue to farm the ground ourselves, buy inputs ourselves, make the cropping decision ourselves, market it ourselves. Sometimes I wonder if our COP could b improved by not owning any machinery and hiring the farm work done, but timeliness would worry us too much.
Separating the different parts of a farming business out to see what part is pulling it's weight and what part is good, but must be looked at over a 5 + year time frame. Does investments in bins and storage pay every year?? If there is a large enough carry every year or a big basis improvement consistently every year and the grain goes in the bin every year and is marketed in such a way to collect carry and basis improvement every year then maybe they have the best return and you should build more bins and become an elevator! But maybe it's the paper marketing of the crop that has made the most money the last 5 years like u kinda mentioned.....has the paper made u the most for more than 5 years or just 1-3 years?? What it really comes down to is running a farm business very successfully requires you to manage a multitude of mini businesses in a way......where many caps......be a jack of all trades and master of none.
Marketing an additional 1,000 acres requires capital, if u have the access to the capital then by all means I kind of agree with you for next year.....IMO lots of money will b lost next year by tenants paying too much for the right to plant seeds in somebody else's dirt.......there will b money made marketing it well though and there may be money made growing it and selling it also.....time will tell. 220 bushel corn @$4.20 cash would make plenty of farmers money and it could be possible...... | |
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Income: Farming vs marketing grain vs spec trades
