Re: Winter wheat.

Posted by Butch(OH) on July 10, 2017 at 06:14:17 from (66.192.33.38):

In Reply to: Re: Winter wheat. posted by JD Seller on July 09, 2017 at 22:34:22:

JDseller, I understand struggling to paying for agricultural land because I have done it. I have been on both sides, as young farmer struggling to eek out a living with owned and rented ground and now just a (paid for) land owner who doesn't farm a lick. I do operate my farm as a business and have a cash rent tenant. You would seem to be saying that a person who owns land free and clear must attach a cost of ownership above taxes, insurance, maintenance and other real costs in fairness to those who do not own land or did I misunderstand what you said? My paid for farm does in deed cost me money each year, a LOT of money actually but still far short of what it cost me each year when I was paying for it and FAR FAR short of what it would cost of purchased today. I am of course talking cash flow here not making or losing money. In my case what others pay to a lender goes in my bank accounts, same with my paid for equipment that I use to maintain the place outside of repairs and fuel. Sometimes I think that making money, loosing money and cash flows gets talked about one and they same when they indeed are very different things. I am not trying to pick a fight either, just curious about your line of thought. At current land and crop prices around here land cannot be purchased and have a positive cash flow via farming it nor can it cash flow if cash rented. I am also pretty certain that it doesn't make money when a person takes into account gaining equity but that is an educated guess. Only thing I am certain of is that at current cash rents a person can own tillable land and it not only cash flows, it makes money, at leat the IRS seems to think so when I pay my taxes, LOL

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