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Iowa | Hard to say as yields have been so variable over the last few years - 220bpa corn works at says $3 cash price, 180 is a lot closer to 3.50 - add .30 for basis and that’s the cbot number. Beans same deal as we’ve had more 70 bpa beans in the last 3-4 years, last year was lower. I think it’s easier to break down this way:
These are cash prices so corn add .30 and beans .60 for cbot price.
$3 corn <$8 beans - hard to get into black
$3.50 corn $8.50 beans- depends on yields- probably works but not if you’re being honest about replacing things
$4 corn $9 beans - pretty well works with aph type yields
So if you look at that, that’s where our range has been for 3-4 years now- so yield and what % you sold in which range is dictating if you’re in the black or red. Land cost is key, guys that have a high percentage of paid for land can cash flow much lower numbers. . | |
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