$78,000,000/67000ac

[perfecho]

CEO and administration probably took another $300/acre....

[furrowtickler]

The numbers are smaller but the ratio(owned vs rented) is the same for quite a few, it will be interesting to see how things shake out over the next few years. Ideally a farm should have revese numbers.
Too big to fail - lol - every single farm has a tipping point where things start to go backwards. Some may be 2000 ac , 20,000, or even 40,000 plus - but there is always a tipping point that will drive any farm into the ground - that's called not realizing the limits of the environment your in and labor. For investment type farms it's low ROI and top heavy management wages.

[cottonpicken]

At 5 percent thats like a 55 an acre interest cost expense

[farmaholic]

Its the incremental farm size that has to be justified with the cost of machinery and its capacity. Finding a qualified ass(not derogatory) to put in the seat is another issue.

Where are we headed? Some big operations that are supporting several family members need to be the size they are. I think we were able to buy some pretty decent iron with our acres.

I also beleive alot of bigger operators "can" have grain quality issues because of weathering and grain going out of condition because of pushing it in fall. Just saying..

[farmaholic]

Cotton, I did some math on the values being paid around here and you're right. 240k with 25% down @5% is 9k/155 acres is $58/ac interest only. Better be real solid and subsidze it with paid for dirt. Interesting times.... is this sustainable? Doesn't productive capacity mean anything?

[hobbyfrmr]

Lesm i went to one meeting about 12 years ago and when i left there I was really feeling down about how little i was investing on inputs and my machinery was all too small and inferior. Then there was the issue of how poorly we/I market my crops. I really felt inferior that day!
Some already coined the phrase here on Av , but more than ever we are the small ******* on the chessboard! I am ok with that.

[furrowtickler]

Farma - sustainability and productive value were throw out the window about 3 years ago.
It is strictly a place to park money for investors or a dick swinging contest between farmers in some cases - but no one realizes that Mother Nature is a lesbian and don't care about ones manhood .
I think it will sort itself out sooner than later - the last Kramer sale was off about .75 time assesment from a year ago

[Richard5]

The $1164 per acre debt is $750/acre too high I agree.

Somewhat deceiving as it includes all the equipment that was leased (which was almost all)

A point that I have brought up before. A lease is a debt and will always be a debt

[bucket]

I think they were under water on machinery leases.

350k after two years for a 700k seeding outfit can't work out to be in the money.

[furrowtickler]

Agreed bucket - no matter how many ac they are "supposed" to cover.