Cost of Production... And Net Profit

[Klause]

[URL="https://www.scribd.com/document/367092049/Inta-Marcos-Juarez-Informe-Economico-Noviembre-2017"]https://www.scribd.com/document/367092049/Inta-Marcos-Juarez-Informe-Economico-Noviembre-2017[/URL]



This is a cost of production worksheet comparing grain prices & profits from spring and now.

For one complete "cycle", with all expenses included except for [income] taxes and depreciation...

$512 CAD/ha/yr profit. $207/acre.



Wonder if that's why farmers down there are the youngest on average of all agricultural areas in the world...

[jensend]

Years ago there was cowman on this board who posted a piece of wisdom all should remember: Profit is an opinion, cash flow is a fact.

[hobbyfrmr]

[URL="https://www.scribd.com/document/367092049/Inta-Marcos-Juarez-Informe-Economico-Noviembre-2017"]https://www.scribd.com/document/367092049/Inta-Marcos-Juarez-Informe-Economico-Noviembre-2017[/URL]



This is a cost of production worksheet comparing grain prices & profits from spring and now.

For one complete "cycle", with all expenses included except for [income] taxes and depreciation...

$512 CAD/ha/yr profit. $207/acre.



Wonder if that's why farmers down there are the youngest on average of all agricultural areas in the world...

Thats cheap. Argentina?
What is farmland valued at?
Seed costs look cheap. Insecticide cheap.
I dont know the language so i could not tell where the land finance/rent cost was in the spreadsheet.
We definitely have a higher cost of production by about $150.00/acre. Some of this is in land investment.
I think we are following the US model, when a farmer makes an actual profit they turn around and leverage it on new machinery and/or farmland . So basically reinvesting in their business at any cost. It helps to manage income tax levels. Why give it to the government when you can invest in yourself.?