South East , Manitoba , Canada | I didn't take a lot of time looking at your figures but ... They only represent a "best guess". Your numbers may not be wrong at all. The reality of farming is that there is not a huge amount of money to be made. The farm market is a high volume low mark-up industry. If something goes wrong there is no big safety net. It's character forming to have the crop in the field and a broken combine in the yard.
The next few months will show a tough market. The reduced production both by the Pork and Cattle industries will show up on all grain producers income sheet in lack of demand for feed grains...
The Ethenol industry demand is low. Where are you going to sell the huge corn crop that is coming??? Soy beans ... oil demand is there but the meal... no demand for that feed product.
In parts of the world the only thing that keeps the farmers going is the Government programs. It's hard to compete with that group.
You can see that the Grain , Chemical, Equipment ,and Fertilizer companies will make a profit... even at your expense.
Review your numbers ...there are a number of resources that you can turn to. The local Ag rep should be able to help you . If not talk to an accountant he / she should have the straight information for you. The Government of Manitoba has a progran called CropPro that you can use to see the cost of production. It's not exact but it gives a reasonable set of budget numbers. I'm sure that there are others available on line.
Good luck
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Can someone work through true harvest costs with me?
