Posted 10/8/2014 21:57 (#4116180 - in reply to #4114845) Subject: RE: Hey guys, remember when...
SE IA
John 86 - 10/8/2014 01:45
When prices are low, you have to spread your overhead over more acres and increase your total production.
Actually this is wrong. Cost of production is the only factor determining how you make money. If lowering your cost of production means covering more acres with your equipment then you are partially right.
The cream will be separated from the milk for the guys who can grow corn with a cost of production for 2.50 per bushel vs the guy growing it for 3 per bushel. Who can spend the same amount and get more bushels?
If your cost of production is losing money on one acre, you can't make more money no matter how many acres you farm.
Hey guys, remember when...
