Originally Posted by Hastings
Originally Posted by IA_fog
Originally Posted by Hastings
P.S Seed corn is over $100 per acre. Illinois set $4.68 per bushel as average cost to produce a bushel of corn in 2022.
My spreadsheet too big to attach but will email to anyone
This is what I figured on a new piece of ground
Fert $250 an acre
Chemical/fungicide $102 an acre
Seed $125 an acre
Equipment $135 An acre
Crop ins estimate is $40 an acre
Rent $275
Gross revenue $1176 (would have sold it for October delivery at $4.90)
Inputs and costs $944
Average per bushel cost $3.93
Left profit of $232 an acre
So back to my 500 acre grower
Gross revenue $588000
Costs owned ground 234150
Cost rented ground 151,480
Net income on 500 acres of corn =
$202370
I know there a few other costs associated but you can catch the drift
I can get zero percent interest on inputs from my retailer so cash rent and fuel is the only cost associated with operating loan of 7%

I was a crop agronomist salesman for 25 years before I took this role of a manufacture rep so still have a huge background in helping farmers attain profit
Originally Posted by IA_fog
Originally Posted by Hastings
P.S Seed corn is over $100 per acre. Illinois set $4.68 per bushel as average cost to produce a bushel of corn in 2022.
My spreadsheet too big to attach but will email to anyone
This is what I figured on a new piece of ground
Fert $250 an acre
Chemical/fungicide $102 an acre
Seed $125 an acre
Equipment $135 An acre
Crop ins estimate is $40 an acre
Rent $275
Gross revenue $1176 (would have sold it for October delivery at $4.90)
Inputs and costs $944
Average per bushel cost $3.93
Left profit of $232 an acre
So back to my 500 acre grower
Gross revenue $588000
Costs owned ground 234150
Cost rented ground 151,480
Net income on 500 acres of corn =
$202370
I know there a few other costs associated but you can catch the drift
I can get zero percent interest on inputs from my retailer so cash rent and fuel is the only cost associated with operating loan of 7%

I was a crop agronomist salesman for 25 years before I took this role of a manufacture rep so still have a huge background in helping farmers attain profit
I'm sure you are correct if everything falls into place. But $4 corn and 200 bushels happens. And my limited experience tells me there is never zero interest.

Just curious, what do you or your company sell.
And that is why you carry crop Insuance and forward sell/buy puts calls.
Last year was no brainer you made money with crop insurance
This year with spring price will be tough
But that is why you focus on your game and production history
Forward selling then protecting with puts/calls
I mainly do HTA contracts which is setting price today and picking your basis(grain freight) later but before you deliver. Say I sell October. Corn for $5 my basis could be anywhere from -.30 to + .10
I would be disappointed is all I grew was 200 bu corn, I’m fertilizing for 300 and doing some other nutritionals etc to try and push on some acres. My local county average is 194 and we have some pretty crappy ground in places and flat black in others( I’m in the flat black zone) almost too flat stays wet.
Zero interest everyday here with one coop . It’s an inhouse financing and if you buy everything from them they offer zero due December of the year.

We might have to be neighbors, but I don’t have to be neighborly. John Chisum