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30% prepay on inputs for taxes....
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Pat H
Posted 7/10/2012 12:10 (#2477384 - in reply to #2475740)
Subject: Re: 30% prepay on inputs for taxes....


PP maybe you should change your name to rustywrench or something. I've only seen responses like this from liberals in the boiler room. Prepaying now given a short crop may or may not be good idea depending on your insurance payout. No one gets rich on insurance, you just stay in business. Lots of guys are thinking insurance payments are coming given the crop condition which means 80% (or whatever level you picked) x aph x whatever price decides to be. The insurance trend adjustment helps bring up aph's, but often getting yields that match your aph are not great and 80% of not great is worse - in other words maybe not a lot of money left after paying bills. I'm thinking it's best to match expenses with cash flow and in a low cash flow year, you won't need as much expense.

Pat
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