String&stick
WKR
- Joined
- Jan 16, 2018
- Messages
- 1,034
Ah different worlds. . . But the math works pretty good here on the western edge of the corn belt. $7 corn and $14 beans covers a whole lot of expense. Sure prices have come up for inputs, but my farmers are looking at the profits I posted. And those are pretty rock solid cash flows. Things are even better for guys owning land and if they were able to lock in 50% of fertilizer last fall.Coming from a family of farmers, I am always sympathetic. None of my family or friends farm huge tracts of land and most work several hundred acres up to 2000. I am sure there are plenty out there who have done very well for themselves and that is great news. But the average farmer that I know does not fit that description here in Virginia. There is always the stress of getting timely rains, not enough rain and sometimes too much rain. Equipment breaks at the absolute worst times and having to buy new equipment cost more than most peoples houses.
I am not sure that I agree with your math when it comes to the 2022 crops. It will be a tough year to make money this year with the input costs having increased so much. Chemicals, fertilizer and fuel have doubled (tripled in some cases, ie roundup). If costs rise by 100% and the crop prices only increase this year by 20% then my math says it won't be good for farmers in general.
I work with operations from 500 aces to 8000 ish. . . The 500 acre guys are definitely on the lower end of profitability but still looking at $200 per acre profit if they raise their average crop