Posted 1/8/2019 08:57 (#7229171 - in reply to #7229099) Subject: RE: Trade talk outcomes, what we should want to see.
KS and NE in eastern 3rd
The only advantage they have over us is currency. US farmers have learned to operate on very thin margins. Our ag industry is very developed. Look at all the infrastructure we have here that makes us operate very efficient. I doubt the SA farmer can take seed and put soybeans to the ports more efficiently than we do. Land cost here is not as outrageous as some of you think. Land cost should be around 1/3 of the value of the production. I think in most cases it still is. When you look at land cost from an ownership perspective the cost of land is the current interest rate one could receive times the value of the land. You should not be able to buy a farm and expect the returns to make the principal payment. Sure you can return a profit above the land cost that can go towards the principal but some expect land to pay for itself. Does a 401k fund itself?