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Coffee Shop
input prices
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<blockquote data-quote="Stocker Steve" data-source="post: 1725298" data-attributes="member: 1715"><p>A lot of government subsides flow into land and land rent pricing. Some grain guys are willing to rent on a cash flow basis, and many are thrilled with a U$S 50 profit per acre once in a while. Input marketers know this and price accordingly.</p><p></p><p>Land rent here runs mostly $35 to $80 per acre. Because your per acre input costs are spread over a much lower yield than in the I states, the grain profit per acre is less than with $300 land rent.</p><p></p><p>A way to break out of this marginal land death spiral is to learn how to manage a seasonal herd, but this is too much for most. A more typical approach is to try to run will almost zero machinery expense - - a line of paid off equipment with a few parts machines in the tree line. Seems to work for a while...</p></blockquote><p></p>
[QUOTE="Stocker Steve, post: 1725298, member: 1715"] A lot of government subsides flow into land and land rent pricing. Some grain guys are willing to rent on a cash flow basis, and many are thrilled with a U$S 50 profit per acre once in a while. Input marketers know this and price accordingly. Land rent here runs mostly $35 to $80 per acre. Because your per acre input costs are spread over a much lower yield than in the I states, the grain profit per acre is less than with $300 land rent. A way to break out of this marginal land death spiral is to learn how to manage a seasonal herd, but this is too much for most. A more typical approach is to try to run will almost zero machinery expense - - a line of paid off equipment with a few parts machines in the tree line. Seems to work for a while... [/QUOTE]
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