Posted 11/24/2015 20:57 (#4917801 - in reply to #4916849) Subject: RE: Just how do you take out $200-$300 land rent?
EC Nebraska
Brandon SWIA - 11/24/2015 11:48
Yes, that's pretty much what I said. Land will continue to be farmed as long as variable costs are covered. Land is a fixed cost. If revenues do fall below variable costs, then land could go idle.
As my econ prof liked to say, "On a long term scale, all costs become variable." The difficulty is discerning the exact time scale where that happens.
Crop Acres: Slow to adjust
