At the very least an opportunity cost should be taken on land.
Announcement
Collapse
No announcement yet.
COP
Collapse
Logging in...
Welcome to Agriville! You need to login to post messages in the Agriville chat forums. Please login below.
X
-
Its not about always cutting costs. Some people will step over a rookie to pick up a loonie. I see it so often with "low cost" producers who think saving $20 an acre to loose $50 an acre or more on the revenue side. $12 an acre for fuel is obviously not possible. Then you are getting custom work or custom trucking which has to be factored in. It costs me easily $8 just to get the crop in the bin. Didn't realize that disease has to do with how you farm? Does the spores just stop at your property line? Do you not pay any tax at all? No professional fees. Yes your kids bikes are a cost. If your equip is that old its hard to believe your parts and labor bills are that low. Any interest and principal payments on any loan. Even your personal car loan or line of credit. Any depreciation? Need to put new windows in your house. It all adds up especially if you have small acres to put those things all across
Comment
-
I am one of the highest producing farms on a yield per acre basis in our area. I do it cheaper than many. Why is this hard to understand? It is well known longer crop rotations make healthier plants, and agronomically fight disease.
How is 12 dollars an acre in fuel not accurate? I burn half a gallon to seed for crying out loud! Yes I get my grain custom hauled. This is a cost and is entered in my freight cost column. I also get spraying done. This is entered in the custom spraying column...
Yes I pay tax, but I sure do not pay 50 bucks an acre, that to me is bizarre. You are obviously very wealthy! Good on you!
So would my kids bikes be a cost if I were a teacher??? A Saks Power worker? My machinery repair costs are as accurate as can be. Why is it hard to believe this? Because of the perception that older machinery is garbage? Remember, I am putting far fewer hours on my equipment than the big boys are. My 1976 4230 just turned 6000 hours. He runs the auger, fertilizer spreader, does yard work, swaths.
My interest on my land mortgage is factored into my interest costs. I do not have a personal vehicle loan. I do not need the headache of a new vehicle with its thousand buck a month payments. Depreciation on what I have is low, very low. It is part of my cost figuring, but is only about 7 bucks an acre. New windows in the house? What about carpets, washing machines, or any other renovations? These are not a farm cost, these are a personal cost, imo. These things are EXACTLY where I cut costs. I do not need vehicle payments, I do not HAVE to replace windows. I can live with imperfections in my home until we have the cash to fix specific stuff up. No big deal...
I would never buy land for 3000 an acre, that is insane, especially when productive, 50 bushel an acre canola land can be found in other areas for under 1000, so no worries there. Land I bought 5 years ago, I paid less than 500 bucks an acre for.
I am aghast that I am not believed. What am I supposed to do, post my income tax forms and latest income statement?
Just like I am amazed you can possibly spend this much, you are amazed I can spend so little.
To each his own, I guess.
I simply put the most I can into the soil, into the crop. That is where I see the largest return. I do not see a return in newer machinery, my numbers that you do not believe regarding my repairs, fuel etc. attest to that. It is because I max out on fertility that I am a step ahead of most neighbors, because they usually are out spending on iron, on rent, on stuff that simply does not make your crops better.
An example: I seed with a mid 90's air seeder, modified to do no till with atom jet twin band openers and shank packers. If I am careful with it, I can get excellent emergence = to or nearly as say a seedmaster. Using a machine that is worth 20 000. The atom jets offer awesome fert placement, and if I do my part, I can grow excellent crops with this low cost machine.
I have been asked many times about my cropping practices by neighbors who use machines worth 10 times what mine is worth, because they know my crops are good, and they know I get good yields. I pull it with an equally old tractor. Tell me, what does a new tractor return ones farm, when all it does is pull a machine for 200 hours while seeding? A bit more comfort? Does a cushy seat and a quieter cab grow better crops and offer a positive return? I don't think so. It depreciates, and is a money pit, IMO.
I am surprised at your surprise, is all. lol.
Comment
-
Btw freewheat I agree with your numbers. After going through no crop last five years or more a guy keeps the pencil extremely sharp. Not everyone enjoyed record net farm income. I retooled in 10 won't be any new iron headed My way for quite some time. Wasn't the best decision in hind sight. Can be huge savings on fuel with conventional combines and mechanical drive sprayers. I like your rotation
Comment
- Reply to this Thread
- Return to Topic List
Comment