Posted by JD Seller on November 16, 2014 at 21:15:33 from (208.126.198.123):
In Reply to: Re: Farm economy posted by LAA on November 16, 2014 at 18:18:39:
Many of these newer "large dairies" Have production contracts. If they do not fill the contracts they have to "buy" milk to replace what they did not produce.
Also they are like a lot of grain farmers. They believe that prices will "save" them if they have top production.
Look at the guys giving $500 per acre cash rents. There is no way it pencils out but they are doing it.
Six hundred acres to the north of me just changed tenants. The "new" rent is for $450 a year for four years. There is absolutely ZERO profit in that deal but there where three guys bidding to farm that ground. All are fools.
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