East Troy, WI | No point. I just think we play mind games with short term and long term classifications - when what matter is NPV, or IRR - however you want to view it. I don't like the idea of selling land to farm - but I am not sure it really matters in time-spans of decades. (No, our farm is doing fine).
If you are a high-cost producer, you will be worth less, per acre ( more formally, per bushel ie per marginal physical product) , than anyone below you. I'm not sure what else matters. I guess these classifications do matter to financiers as they can categorize risk premiums/discounts into the proper years (for time discounting). Crude binning method.
Lumpers versus splitters I guess. |