Wilie: The boys are late thirties and early forties in age. They are good farmers. I mean that they do a good job with the crops and all. Their places look well kept and all.
The concern is that my friend started these boys way up the ladder. He was tight and worked like a slave an built a fine operation.
His biggest worry is that inflation has eroded his equity compared to the gross.
Example:
Just five years ago 3000 acres would have a gross of maybe $1 million. So if he owned assets worth that million he was golden.
Now the 3000 acres could gross $3 million and his assets are only $2 million. Now there could be a million short fall.
I know this is a very simplistic example but it is the heart of the matter. The equity you have could vanish very fast with todays prices. One bad crop could do it even with insurance. The margins this year are razor thin on most of the rented ground.
Lets say you lose $200 per acre on 3000 acres. That kind of lose would be very easy to do with the total cost per acre being right at $800 to plant an acre of corn with rent included. That is $600,000. That is years worth of profit.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - A Lifetime of Farm Machinery - by Joe Michaels. I am a mechanical engineer by profession, specializing in powerplant work. I worked as a machinist and engine erector, with time spent overseas. I have always had a love for machinery, and an appreciation for farming and farm machinery. I was born and raised in Brooklyn, New York. Not a place one would associate with farms or farm machinery. I credit my parents for instilling a lot of good values, a respect for learning, a knowledge of various skills and a little knowledge of farming in me, amo
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
