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<blockquote data-quote="Stocker Steve" data-source="post: 1383646" data-attributes="member: 1715"><p>Saw some I state data recently on value of "low productivity" land. Lower rent or lower price did not offset fixed costs spread over less output. IF commodity products were worth more then drainage or irrigation or cross fence MAY turn the economics around. </p><p></p><p>Saw some 2015 MN data today on crop farming profits sorted for the new technology applied. ALL technology plays had bigger losses that average. I think the additional investment had a negative return with low - - below total cost - - grain prices. Ag expert said we needed more years of data. Fair, but I doubt 2016/2017 will be better. Time to face up to a reset.</p><p></p><p>So there is an opportunity to convert unprofitable and/or abandoned crop ground to perennial forages, if you do not overpay for the land. Main northern MN operational issues are establishment costs and balage/hay making costs. High stock density is often prescribed to reduce establishment costs. A seasonal operation is often prescribed to side step wintering costs.</p></blockquote><p></p>
[QUOTE="Stocker Steve, post: 1383646, member: 1715"] Saw some I state data recently on value of "low productivity" land. Lower rent or lower price did not offset fixed costs spread over less output. IF commodity products were worth more then drainage or irrigation or cross fence MAY turn the economics around. Saw some 2015 MN data today on crop farming profits sorted for the new technology applied. ALL technology plays had bigger losses that average. I think the additional investment had a negative return with low - - below total cost - - grain prices. Ag expert said we needed more years of data. Fair, but I doubt 2016/2017 will be better. Time to face up to a reset. So there is an opportunity to convert unprofitable and/or abandoned crop ground to perennial forages, if you do not overpay for the land. Main northern MN operational issues are establishment costs and balage/hay making costs. High stock density is often prescribed to reduce establishment costs. A seasonal operation is often prescribed to side step wintering costs. [/QUOTE]
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