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| Some guys with lots of paid for land will mention absurdly low cost of production figures because they aren't taking into account the cost of their land.
There is a subset (maybe even a large subset) of that group who has gotten a bit sloppy. Maybe they inherited their ground and are only doing a good enough job of farming that they can live the way they want to to live. It's not a job or business to them, just a profitable hobby that allows them to pursue all of their other hobbies without having a "real" job.
When someone who has to make things cash flow while paying competitive cash rents observes that subset of farmers, they see lots of waste and may even draw the conclusion that they are "burning equity".
While it's true that group of farmers would likely be better off if they were to rent their ground out and then thoroughly apply their labor and operating expenses in another endeavor, it's probably just wishful thinking that they are "burning equity". The only way their balance sheet will decrease year to year is if the value of their land decreases. | |
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The Big Reset underway..?? Corn to $2.. Beans to $6. When does it hit input prices?
