EC IL | tmrand - 6/21/2020 22:22
I'll try to not be too critical here............because I understand that no one is born getting to decide their lot in life..........but,
Your above statement definitely helps me understand why you think that corn belt farmers have the upper hand and can grow corn cheaper than anywhere else. It's not that it's cheaper for everyone in the corn belt to grow corn. Merely cheaper for those with a land base handed down to them. I'd bet that there are perhaps some start ups or rent only farmers in the corn belt who would struggle harder than me trying to compete growing corn. I'm 2nd generation, but my folks weren't aggressive farmers. So all of my land I either pay full rent price, or full sale price. I have no free or reduced price land to farm.
Good grief! Woe is me, the new American way! I do not know of ANYone who has "free or reduced priced land to farm" Period.
Simply put; what Chief is saying is that, generally speaking, higher APH areas have a larger percentage of APH devoted to land costs. Thus, a higher margin above variable costs to fall back on, to provide SOME return on land, in his 1.85 scenario. I'm not certain he's correct, but I suspect he's more correct than you might think.
No idea why this is so difficult to comprehend.
|
Looking forward.
