Minding Ag's Business
Marcia Zarley Taylor DTN Executive Editor

Friday 12/21/12

Test Capacity for High Cash Rents
Corn producers show huge ranges in ability to pay maximum rent on an additional farm. What's more, unexpected hits to yield or revenue can push a good grower into the danger zone.[Read Full Blog Post]
Posted at 3:51PM CST 12/21/12 by Marcia Zarley Taylor | Post a Comment
Comments (2)
See http://www.aberdeennews.com/news/aan-column-congressional-proposal-just-insane-20121215,0,3938965.story
Posted by Lon Truly at 5:59PM CST 12/21/12
A major reason that margins in ag are tight is because of government not only assuming nearly all the production and marketing risks for many of the major ag crops, but also government guaranteeing a profit to many farmers with current prices and current government insurance schemes. Current farm bill proposals double down on these government risk assumption schemes with new and crazier shallow loss income guaranteeing schemes. When farmers have to budget for more of the production and marketing risks they are not as crazy about driving profitability margins below zero.
Posted by Lon Truly at 1:27PM CST 12/25/12
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