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<blockquote data-quote="forageconverter" data-source="post: 400447" data-attributes="member: 6466"><p>Brandonm2,</p><p></p><p>Thanks for the informative reply. I guess viewing land as a completely separate investment answers my question better than anything.</p><p></p><p>I mean I understand the numbers of it all, but I'm not sure one can have a realistic discussion of the economics of a cow/calf operation when the biggest and costliest input, the land, is not charged to the operation itself. I figure the purchase of land as a cost to the operation but at the same time view the land as an acquired asset, one in which the operation is acquiring. I figure profit of the operation by measuring change in net worth. Most all of the profit is attributed to the accumulation of assets, the greatest asset being land, as it actually appreciates.</p><p></p><p>If the revenue generated by the cow/calf operation is unable to make the payment on all inputs to the operation, then I feel the operation has to be viewed as a non-profitable operation as far as the cattle are concerned.</p><p></p><p>I guess where land is so valuable that it would be impossible to acquire with cattle, the land should be viewed as the cake, and the cattle should be viewed just as the icing on the cake.</p></blockquote><p></p>
[QUOTE="forageconverter, post: 400447, member: 6466"] Brandonm2, Thanks for the informative reply. I guess viewing land as a completely separate investment answers my question better than anything. I mean I understand the numbers of it all, but I’m not sure one can have a realistic discussion of the economics of a cow/calf operation when the biggest and costliest input, the land, is not charged to the operation itself. I figure the purchase of land as a cost to the operation but at the same time view the land as an acquired asset, one in which the operation is acquiring. I figure profit of the operation by measuring change in net worth. Most all of the profit is attributed to the accumulation of assets, the greatest asset being land, as it actually appreciates. If the revenue generated by the cow/calf operation is unable to make the payment on all inputs to the operation, then I feel the operation has to be viewed as a non-profitable operation as far as the cattle are concerned. I guess where land is so valuable that it would be impossible to acquire with cattle, the land should be viewed as the cake, and the cattle should be viewed just as the icing on the cake. [/QUOTE]
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