Posted 1/11/2019 09:26 (#7237111 - in reply to #7236642) Subject: RE: High rent thread below
Columbia Basin, Ephrata, WA
dvswia - 1/11/2019 04:26
how is it you can live on "breaking even"? maybe we have a different definition of that..
I don’t live on breaking even, because we don’t hire everything done.
There should be a little bit of profit to be had with every field operation done for yourself at custom rates. The more of those operations we perform ourselves, the more we make. Hopefully there’s also some margin to be had for the financial risk, but that can be pretty slim at times.
This theory doesn’t translate well in places where custom rates are unrealistically low. If you can still get someone to combine for less than $25, the guy in the corner office has a solid chance at making money farming with just his phone. Farmers tend to do custom work too cheap, which in this scenario has the same end effect as high cash rent, it just makes more money available to absentee landowners and/or managers.