Charlie, trying to compare different farmers costs is not easy. One guy may spend 40 dollars on N, and 50 bucks on machinery, and get 35 bushels. One guy may spend 75 bucks on N, and 15 dollars on machinery, and end up getting 52 bushels an acre.
It is not easy to compare. Around here, the smaller-mid size farmers IMO actually get the better average yields, because they have less tied up in land rent and machinery costs, so they go harder agronomically. Some guys have more love for steel, so they short themselves a bit to be driving a quad track or whatever. Also, the more acres farmed, it is simply harder to get EVERY piece of land produciing optimally.
Again. The number one reason canola yields have gone up, is rainfall and less heat in usually dry and hot areas. The number two reason, is soaking inputs on relative to 10 or 15 years ago. Weather has to be good to hit 50. everyone is spending money on fungicides, needed or not. Some guys swear they work, some guys think they are pointless. Many guys now pencil it in as a matter of course.
Some guys make more money with 35 bushel canola, than their neighbor with 50 does, and vice versa, because of their focus in life.
Canola sucks with wet feet. Peas suck worse with wet feet. Barley sucks with wet feet. I see few crops that do much better than the other in saturated soils. So for me, in the wettest of the wet zone, my cropping plans have little to do with excessive moisture.
Another thing. You ask why we keep growing canola. Honestly Charlie, here is my response. Take it for what it is worth.
Farmers honestly are not as smart as you think. You give them far too much credit for financial savvy. I think the guys on here, honestly are far from typical, in that I think most are smarter than the average guy out there with their money. Some sure are on top of things. But most guys do a quick gross revenue calculation, and forget that canola costs way more to grow.
Canola also is one of the few crops where a true home run can be hit. It is about the lottery factor. A 60 bushel canola crop would net out better than almost any crop of wheat, barley, or oats. Guys are going for the holy grail, they want the home run. Trouble is in most areas the home run only hits once every 5 or so years. But when you have hit that home run before, you want it again. It is a drug like factor to be frank.
Secondly, with cash advances based on Crop insurance yield times price, to get a decent cash advance for summer operating, the highest GROSSING crop will pull you the most up front cash. So that is another reason. Most guys highest grosser is canola by a fair margin. If it went by net revenue, less canola would be grown for the advance advantage.
It is not easy to compare. Around here, the smaller-mid size farmers IMO actually get the better average yields, because they have less tied up in land rent and machinery costs, so they go harder agronomically. Some guys have more love for steel, so they short themselves a bit to be driving a quad track or whatever. Also, the more acres farmed, it is simply harder to get EVERY piece of land produciing optimally.
Again. The number one reason canola yields have gone up, is rainfall and less heat in usually dry and hot areas. The number two reason, is soaking inputs on relative to 10 or 15 years ago. Weather has to be good to hit 50. everyone is spending money on fungicides, needed or not. Some guys swear they work, some guys think they are pointless. Many guys now pencil it in as a matter of course.
Some guys make more money with 35 bushel canola, than their neighbor with 50 does, and vice versa, because of their focus in life.
Canola sucks with wet feet. Peas suck worse with wet feet. Barley sucks with wet feet. I see few crops that do much better than the other in saturated soils. So for me, in the wettest of the wet zone, my cropping plans have little to do with excessive moisture.
Another thing. You ask why we keep growing canola. Honestly Charlie, here is my response. Take it for what it is worth.
Farmers honestly are not as smart as you think. You give them far too much credit for financial savvy. I think the guys on here, honestly are far from typical, in that I think most are smarter than the average guy out there with their money. Some sure are on top of things. But most guys do a quick gross revenue calculation, and forget that canola costs way more to grow.
Canola also is one of the few crops where a true home run can be hit. It is about the lottery factor. A 60 bushel canola crop would net out better than almost any crop of wheat, barley, or oats. Guys are going for the holy grail, they want the home run. Trouble is in most areas the home run only hits once every 5 or so years. But when you have hit that home run before, you want it again. It is a drug like factor to be frank.
Secondly, with cash advances based on Crop insurance yield times price, to get a decent cash advance for summer operating, the highest GROSSING crop will pull you the most up front cash. So that is another reason. Most guys highest grosser is canola by a fair margin. If it went by net revenue, less canola would be grown for the advance advantage.
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