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Frustrated
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Posted 3/20/2024 23:55 (#10673359 - in reply to #10673126)
Subject: RE: Frustrated


Southern IA
WAYNE0224 - 3/20/2024 19:40

ehoff - 3/20/2024 19:49

I dont think they are bidding up rents just to lose money. My guess is they are alot better at insurance, marketing, and cost. I could be totally wrong.



Of course they are better at insurance, since enterprise units are only available to operators of certain size..... SO yeah, theres that..... Next the inputs are bought at a better price since the seed guys only want to sell complete truck loads of seed corn, and not a measly 10-15 bags.... Then on the marketing, our local ethanol plant only contacted big operators early this fall to allow for the no deduct high moisture corn offer in late September...... It s really a stacked system... These guys will bid the cash rent at "cost" in hope that they have a better than average year....Ive been watching a local BTO for about 10 years now... I know what they were offering back in 2017-18 to the penny....Beans were about to tank out after Trump put tariffs in place on China, I was just waiting for this BTO to take a royal bath, as the amount they were paying rent was more than the crop could gross in total..... The only acres they could have made a net positive that year was the corn acres they put out.... But in typical luck, the next year had a run up in prices, and they came out profitable. ehoff , you are not wrong, but its not the OP's fault that he cannot beat them in this setting.


Waiting around for your neighbors to implode isn't a good business plan, while you're waiting you should read up on how crop insurance works
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