Minding Ag's Business
Marcia Zarley Taylor DTN Executive Editor
Fri Dec 21, 2012 03:51 PM CST

Tis the season for serious 2013 cash rent negotiations as well as Christmas. But aggressive cash rent bidders beware: Yes, some high-profit corn operators can afford to pay hundreds of dollars per acre more to pick up a new rental parcel than their competitors in any given year. But the ability to pay extreme rent on that new farm can be easily sabotaged if rosy assumptions on revenues or yields fail to materialize.

One method to calculate what you can afford for expansion is to assume you can cover overhead and fixed costs with existing acres, so incremental acres need ...

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