Wheat 35% Can 39% Peas 9% Barley 17%
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$100 an acre? Give me a break. Getting a little rediculous when you make way more money not seeding then seeding. Maybe the business paln would be to go to Freewheats country and buy some $500 land and receive $100 payments with 0 risk. 20% a year return. I can live with that.
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Actually I am from Alberta and we have had about 9 inches of rain. farming is a business and in every business there is risk. Should every business in your local town get bailed out every time they run into some sort of trouble or just farmers. I am not even sure if Alberta has a unseeded acre benefit. Freewheat you seem to think you are the only farming area that has it so hard. There are other risks associated with farming then weather. Yes maybe we have less weather troubles then you but my land also costs me $2000 and acre and $5000 for irrigation. With that kind of land payment you dont think there is risk involved? Not everything is equal nor should there be blanket payments sent out to everyone. You pay accordingly for your land or rent and buy inputs and take some risk. Why should the govt bail you out if it rains too much or doesnt rain enough. In my mind govts should work to level the playing field with access to markets(tariffs subsidies CWB etc) and then if I cant compete then I can't compete. Getting a $100 payout because it rained too much is utterly rediculous. So I get my crop in and work my ass of all summer and throw everything at it to make $20 bucks if I am lucky or maybe lose $20 an acre yet if I got rained out then I gaurantee myself a $50 profit.
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25% HRS
25% Canola
50% unseeded.
20% now F%^cked on acres seeded.
VValk, your way off base here.
$100/acre isn't profit.
Your saying you might make $20/acre, AFTER expenses.
$100/acre will barely cover most guys fixed costs. If renting land/ or making payments.
Big difference.
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Snappy what would you rather have? Spend $200 to $225 to put an acre of wheat or durum or barley in. $225 / $4.50 per bushel = 50 bushels to break even or $225 / $4 = 56 bus or $200 / $3(in AB less in Sask) = 70 ish or do nothing all summer and receive $100. Also fixed costs can be mitigated a bit. Payments can be extended or if you are getting some custom instead of equip payments. Also $100 fixed payments are on the high side dont you think. Especially if you are only paying $500 an acre for land.
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I would rather have the first option.
Reason being. At that $200/acre your expenses are covered.
Sure you spun your wheels for nothing this year but none the less you DIDN'T go backwards.
Option 2. Take $100/acre and do nothing.
Every farm is different, but here are my numbers.
$45/acre land rent
$63/acre land payments
$11/acre land taxes on owned land.
$18/acre machinery payments.
$12/acre deprciation.
$8/acre living expenses(allows me a wage of $35000.00)
On our acres we would average $53/acre landrent/payments.
Land taxes work out to $4/acre as I rent more than I own.
53
4
18
12
8
=$95/acre
If your land and machinery is paid all the power to you.
If your under 35, and Dad isn't available.
This is your fate.
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lets not forget that this land in the future will produce up to twice the yield and you will make up a lot of lost ground. When we farm our lakes or sloughs the year after, the combine has to creep along. Also who ever said you cant go broke farming, its not up to the taxpayers to bail out every farm when they run into trouble.
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