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| One thing to keep in mind is that those are average costs. Trim 10% off each category and you have an extra $50. Add 5 bu than average yields and you are up another $30. Do a bunch of little things a little better than average. Focus on things you can control.
BTO's have economies of scale, but in general, I don't think they are necessarily low cost producers. They are just willing to accept lower margins on more acres. In times of growing profits, this works well as land rents are always lagging.
Brandon | |
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