AgTalk Home
AgTalk Home
Search Forums | Classifieds | Skins | Language
You are logged in as a guest. ( logon | register )

What happens next
View previous thread :: View next thread
   Forums List -> Market TalkMessage format
 
Longswamp
Posted 10/4/2017 11:53 (#6286943 - in reply to #6286849)
Subject: RE: Featherfarmer question


Indiana
IN555 - 10/4/2017 11:43

So to cover your variable cost as you suggest, say your aph is 170 that means your break even is 2.06/bu. How many opportunities has there been to buy the board at that? ?


Yes. There have been lots of opportunities to sell at much higher than $2.06 meaning I am much better off raising the crop than not raising the crop. I would be a fool to buy the board in hopes of making .50 a bushel when I could SELL the board now and "make" $1.50 to apply to fixed costs such as land and overhead.

If I can't sell corn for at least $2.06 I should not be raising corn!!! In theory I could just buy corn at $1.90Z and save myself $.16 a bushel.


Sorry if you misunderstood me. My point was that it is still better for a farmer to plant and lose a little money than to NOT plant and lose even more money.
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete cookies)