colson04
Senior Member
Solid assessment @.RC.
Similar situation here. My local climate can grow corn and soybeans, both quite valuable crops. Our average yield on corn was around 180 bushel/acre last fall, with a harvest price in mid-November of $4.15/bushel.
My annual mortgage comes out to $218/acre (I had 40% down when I bought my parcel) . Property tax and insurance another $65/acre. Cost to plant, grow, harvest an acre of corn about $430/acre.
Gross Income last fall $747acre
Expenses $713/acre
Net profit $34/acre
This changes fast if you owe more for land, or prices drop. Current spot price of corn is $3.89. My net profit (on paper) is -$12.80/acre. When we had $6.40/bushel corn in the bin a year ago, we felt high on the hog. It comes and it goes. At least the milk check comes twice a month. Keeps the lights on and the mouths fed.
Similar situation here. My local climate can grow corn and soybeans, both quite valuable crops. Our average yield on corn was around 180 bushel/acre last fall, with a harvest price in mid-November of $4.15/bushel.
My annual mortgage comes out to $218/acre (I had 40% down when I bought my parcel) . Property tax and insurance another $65/acre. Cost to plant, grow, harvest an acre of corn about $430/acre.
Gross Income last fall $747acre
Expenses $713/acre
Net profit $34/acre
This changes fast if you owe more for land, or prices drop. Current spot price of corn is $3.89. My net profit (on paper) is -$12.80/acre. When we had $6.40/bushel corn in the bin a year ago, we felt high on the hog. It comes and it goes. At least the milk check comes twice a month. Keeps the lights on and the mouths fed.