What are profitable yields

[helmsdale]

I think virtually everybody is profitable at 40 bushel canola at even 9.5 canola. I think there will be closer to 33-35 bushel canola though. I don’t see how anyone makes money with 41 bushel wheat at 5.5.

Crop insurance area average is 22 on stbl here...

As Jerry McGuire would say, "Show Me The MONEY!"

[grassfarmer]

Had a guy offer me wrapped corn silage bales at $80/bale recently. I imagine that it would easily do over 10 bales per acre. That could be quite profitable if they find someone to buy it at that money.

[GDR]

It always bothers me when people think that because someone has everything paid for they can do things for less.
Ever hear of “opportunity cost”??

You are not wrong but I think the thought is more that a skinny year may be tough for the paid for guy but may be devastating / career ending for the guy with payments. Timing is everything in this business.

[AlbertaFarmer5]

It always bothers me when people think that because someone has everything paid for they can do things for less.
Ever hear of “opportunity cost”??

Very true, as I keep trying to teach Chuck about the opportunity costs associated with his solar panels...

BUT, If things really get ugly for an extended period, if an operation with paid for assets is willing to ignore those opportunity costs, that may be the difference between surviving to carry the business into more profitable times, and not.

The budget should certainly include opportunity costs, but perhaps they should be averaged over a number of years/decades.

And in this environment, what is a reasonable opportunity cost to use? Interest on savings?

Edit, I see GDR typed the same thing as me, just faster...

[LEP]

It always bothers me when people think that because someone has everything paid for they can do things for less.
Ever hear of “opportunity cost”??

Yes, but "Opportunity Cost" doesn't foreclose if it doesn't get paid for a year.

[farmaholic]

Yes, but "Opportunity Cost" doesn't foreclose if it doesn't get paid for a year.

I think ROI on the capital(asset values and expenses) required to farm is dismal. And sickening dismal for the risk.
And remember folks opportunity cost and salary/wages are two different things.

Want to be real sick....price in opportunity cost, wages/salary and depreciation!
Can it possibly cover all real hard expenses and these?
Some years there is nothing for opportunity cost. Some years you pay yourself less. Is depreciation on a newer line of equipment ever recoverable? If it was you wouldn't have to borrow so much to replace equipment...the money would be in the bank, but no, you need time on your side to borrow it.

[LEP]

Is depreciation on a newer line of equipment ever recoverable? If it was you wouldn't have to borrow so much to replace equipment...the money would be in the bank, but no, you need time on your side to borrow it.

Yes, I agree to some extent. But part of the problem is the absolute runaway price on new equipment. It would be easier to cover replacement with depreciation if prices were similiar after 4 or 5 years.

[Richard5]

Apparently there is not enough profit near Edgeley. A once upon a time Outstanding Young Farmer of the year is having an auction. Maybe this has been the awful floodzone for the past 20 years as some are claiming

[LouiseCarduner]

Are 41.5 bu/A wheat or 40 bu/A canola yields profitable? These were average yields in Sk last year.
Of course depends on average price received.

Can you grow oats or Fall Rye in your area?

Have you tried intercropping - EG Peas and canola together?

[farmaholic]

Apparently there is not enough profit near Edgeley. A once upon a time Outstanding Young Farmer of the year is having an auction. Maybe this has been the awful floodzone for the past 20 years as some are claiming

I doubt that guy had any emotional attachment to the land and just decided to let the money make the decision and cashed out at the possible peak in the cycle at a tidy profit?

Like I said, if someone is not emotionally attached to the land and willing to go anywhere for their next venture.... what's holding them back.

An investor bought right beside us after apparently flipping land in a different area. I think he is a bit late to the party here and won't see the parabolic growth on the chart he saw with his last venture. Personally all I think he can hope for is the tennant to continue to make the payments on his (down paymented) mortgage on the land and inflation to drag up its value up further.....if a correction doesn't reduce land values first.

[farmaholic]

If the Investor can continue to find tennants, do you think he cares which crops are profitable?

After afew assumptions, the "landlord/investor" needs about $77.00/acre to make the mortgage payment.....and the farmer gets to take all the risk and pay all the expenses of producing the crop and buy depreciating machinery to help pay for his landlord's land..... doesn't make fracking sense to me!

But WTF do I know.

[fjlip]

Cam malt get 100 bu/ac? Can even $5 be feasible if a large crops comes off?
I know feed variety’s can yield like crazy, maybe some new malts can also.
I quit growing malt, acceptance was low for me, so stuck with bin busting high busheling high test weigh feed type. Lol

We have neighbors claiming 100 bu malt, all goes to Malt Europe, picked up @ $5/bu on first 60 bu. Barley is fantastic in this area, 1000's of acres maturing nicely! Only applies to this farm, need 50 bu wheat at $5.50/ bu, that is no return to labor or opportunity. Need 32 canola at $9.50 for same. Could be close to ZERO profit, depending on weather.