Columbia Basin, Ephrata, WA | NE Ridger - 10/26/2018 12:42
What difference does it make? If the ground was paid off with $6 corn, there's no need to pay for it again with $3 corn. Some guys here still have enough $6 corn money left that they're still buying more ground.
As long as their cash flow exceeds the bills and taxes, they don't really care whether or not an accountant thinks they're making money.
If they have the luxury of not caring whether they’re making money, that’s great, but that is different than whether “things still work” at today’s prices. Same guy can probably custom combine for $20 because the combine is paid for, while the custom guy needs $35 to make it work. All is well and good until the combine or the established equity farmer is used up. Nothing lasts forever, and then someone has to face the reality of what actually worked vs what someone liked to think worked.
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The Big Reset underway..?? Corn to $2.. Beans to $6. When does it hit input prices?
