One Earth Farms Loses $3.2 Mill in 1st Quarter!

[Hopperbin]

sask99 do they have to record the Agristablility payment for year it was meant for and not in the year it was recieved? I suppose the adjustment could be made later. Not sure how they could create a loss out of one of the best ever farming years. They do have the farm spread out over distances so risk in one area could have been made up elsewhere. Could be the top heavy management is not worth what they think they are worth and can only create a loss for so long. The investors will not be there forever they need profits. Is the financial statement public?

[cottonpicken]

It's well known,among the people who follow
markets,that the underlying commodity has been a
far better investment than any of the actual producer
related companies(yes there are some exceptions).

Gold companies are an example,the very reasons
people want to own gold and have bid the price
up,also drive up the costs of production,so there has
not been proportional gains in the companies
compared to gold itself.

Many think this will reverse,but until it does i'm
staying in futures,technicals on the hui and xau will
tell us when this happens.

This all applies back to farming and how are costs
may keep killing us to the point where our margins
don't actually change and the one earths of the world
will end up dying.

So obviously,i don't know how all this will land.

At any rate keeping prudent and managing risk like
we have always done is a great strategy.

Furrow,i know you and others have pointed this
philosophy out,i am just showing a quantitative
backing to the theory.

Trust me Eric Sprott is very aware of all this and the
last interview i seen he was pretty dismissive on
farmland,"you could maybe make the case for it" was
the quote i remember.

As far as indians,ya that must be fun,but at least
them dealing with them rather than the rest of us.

I wonder what the the stress levels of the farm
managers is dealing with the million little things and
know nothing employees.

[wd9]

Could it be showing a loss due to buying all the inputs with minimal sales?

Anyone have access to 2nd 3rd and 4th quarter profit loss from last year? Seems you would need a year of data to base any kind of discussion.

[furrowtickler]

Very good points cotton, and ya depends who you deal with, we farm a couple of 1/4's from natives and so far way better than some landlord stories ive heard localy. Always pay tour reant ahead of time and be straight foreward with them and dito back our way ..... so far. Things may change on next lease renewal after the retard express ran rents up by double but it will settle down i think shortly. Mother nature is taking care of that.

[furrowtickler]

Man my fingers cant spell....

[Hopperbin]

You can farm.

[Hopperbin]

My accountant puts the agristablility in the year I recieved it not the year it was meant for. Should I question that?

[Hopperbin]

WD9 a quarter means dick all on a grain farm. Gotta add up all 4 quarters in a row, what were they?

[Hopperbin]

All these quarters remind me of a joke.
3 year old asks 5 year old how many wives a man can have? 5 year old says 16, 4 better 4 worse 4 healthy 4 sicker

[Hopperbin]

WD9 - The purchased inputs of this first quarter would be considered prepaid expenses until the crop is seeded.

In my opinion, these operations are highly leveraged so the interest costs, wages and leased equipment payments would be significant in almost all quarters

[Hopperbin]

Hopper - I don't think there are many accountants that understand the program or have to tools and knowledge to estimate any payments so therefore no payment would be included in the year end financials.

A properly prepared financial statement is only a picture of what the year's earnings were. If you do work with someone that knows how to calculate, it really should be included in the year it relates to. As you mentioned 2011 being a pretty good to almost the best year of farming for some, it would look rather strange to have AgriStability benefits show up as revenue.

Its probably a bit different now but years ago the financial statements I saw by many smaller accountants were straight cash basis and looked like the tax return as a financial statement. These are basically useless documents from a banking perspective as we would have to do our own thing to try and figure out the true farm picture.

And when asking a farmer for inventories/Receivables/Payables in March/April for the previous year I'm pretty sure it wasn't always very close.

[wd9]

So nobody knows the yearly profit/loss?
Just headlines then? Lull you into
believing they are toast? Sounds fishy.