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Corn cartel
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kst1
Posted 11/30/2018 09:45 (#7138014 - in reply to #7137929)
Subject: RE: Corn cartel


Yea I definitely missed your point.

Problem is if you idle your worst 10% of acres, you are only losing maybe 7-8% of your production, but your fixed costs of equipment, buildings, living expenses, insurance, etc. just went up 10% per acre. You gotta spread those costs out over maximum acres and you're getting further ahead as long as your production is greater than your variable costs. Unless someone is paying you to idle those acres, you're moving backwards in the big picture. I've looked at giving up a piece (actually it was in the frame of losing it) and realized I needed it when you start spreading those costs. I'm not gonna do the math for you but put a pencil to it and it will be pretty obvious.

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