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Working Capital 2016
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badger@uw
Posted 1/3/2016 14:31 (#5007781 - in reply to #5007753)
Subject: RE: Working Capital ...?



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.  

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