Grand Rapids, MI | NDContrarian - 5/24/2011 09:54
My debt service, family living expenses, hired labor, and misc overhead don't go away if I take PP. These costs are going to remain no matter what.
My PP payment of $379 - $140 rent - $70 debt service - $60 fertilizer applied - $30 crop insurance - $20 hired labor - $40 misc overhead = $20 per acre return (in my eyes, not a lot!)
This may all be true, but sunk costs have NOTHING to do with the decision whether to plant or not. They are sunk and you will pay them either way. The relevant question is will you make more or less than that $20 per acre if you plant. |
For those that are putting out PP figures...........
