Feild Tile.

[tornadochaser]

Fowler the farmer...knows all about crop insurance. Probably knows all about yield caps on 1/3 plantings, higher premium rates on erodible acres, etc.

Face it, we're all a bunch of hunters bitching about stuff we know little about. Tile isnt going away. Surface runoff from cities isn't going away. So until mallards decide to evolve and nest in corn stalks and eat minnows, there won't be more ducks in MN.

[Fish Felon]

I've penciled it out. Quick math based on the tools at hand: 600 acres, say 100 corn on corn, 300 corn on beans, and 200 beans. $3 corn and $8.65 beans would net around $90K after inputs. Knock off $50K for the agreed upon rental rate I would pay family for the land (which is well below what we get from the current renter), and I net $40K. But then I have grain storage costs, additional equipment rental costs, and buying my own health insurance just to toss in variables not covered. I would be lucky to break even this year. And due to the location of where the land is, there would be very little chance of picking up additional acres nearby for anything less than $225 an acre non irrigated.

So you're saying you'd clear less than $67 an acre before those additional costs?

I'd pencil it out again.

[tornadochaser]

The info I provided isn't exact to our land, but similar based on input costs and yields. After "standard" inputs not including cash rent, corn on corn would be $60 net per acre, corn on beans would be $150 per acre, and beans on corn would be $220 an acre. These numbers run pretty similar to what my farming friends are seeing. A lit of guys that are paying $225 or more an acre for cash rent and had above average input costs for whatever reasons will be lucky to break even.

[Fish Felon]

It seems like you're using the pioneer cost of production calculator. That thing is garbage and puts cost of production far too high.

Click on the 'allow me to determine my own variable costs' and look at all the crap they have on there that you shouldn't factor in or that is much lower than what they penciled it in for.

[h2ofwlr]

Fowler the farmer...knows all about crop insurance. Probably knows all about yield caps on 1/3 plantings, higher premium rates on erodible acres, etc.

My point is that if free market Ins COs were under writing the crop Ins, how do you think they would make up that $18B shortfall? By higher premiums, especially on those areas where it is a lot riskier to farm due to flooding in heavy rains. The only financially doable way to be profitable for a farmer would be to exclude crop Ins on those medium to high risk acres on their farm.

I'd love to see the premium on those erodable and flood potential areas (including where wetlands used to be) is that the farmers themselves pay one way or another for that risk.

[tornadochaser]

It seems like you're using the pioneer cost of production calculator. That thing is garbage and puts cost of production far too high.

Click on the 'allow me to determine my own variable costs' and look at all the crap they have on there that you shouldn't factor in or that is much lower than what they penciled it in for.

The ND south valley worksheet (similar soil and yield when adjusted) had input costs $100 more per acre on corn than what I used on the pioneer. I'd waste more time scouring the web for the UM extension 2014 inputs but I'm at work. I also correlated input costs w/the average of 4 of my neighbors inputs from 2013. Like I said, its not exact, but it gives an idea of where things are. Could i adjust costs down? Sure. Hell I could save a lot on rent and could pull a guilt trip on my mom and her sisters and probably operate on the land for the cost of taxes. Seen it happen...families cut a son or nephew a break and are proud of the new generation getting started until the kid starts driving a nice truck and buys newer equipment.
I'll stick to taking a week off in the fall, hunting during the day and doing some DMI ripping or plowing at night for friends. I get to turn some rounds, my kid gets to experience a farm, and my buddies get a break. Good enough for me.