Posted by OH Boy on June 16, 2012 at 13:14:46 from (166.249.96.42):
In Reply to: Land rent posted by IaGary on June 16, 2012 at 06:34:41:
I'm a businessman (insurance) not a farmer so bear with me if I am not seeing the whole picture here. But this discussion is very interesting to me because I feel like I have never totally understood the economics of farming.
Can a farmer insure the crop adequately to guarantee the income? If so a $200 an acre profit on $1,000 invested is an outstanding return. Way better than you'll get by investing the same $1,000 at the bank or in the stock market. A one thousand acre farm, which is not that large in todays scheme of things, would produce a $200,000 income.
I realize if you get hailed or droughted out and the yield doesnt happen and its not insured then it could be a heck of a net loss too.
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