1 / 85

Can You Pay $300/acre Land Rent with $4 Corn? November 18-20, 2013

Can You Pay $300/acre Land Rent with $4 Corn? November 18-20, 2013. Greg Halich 859-257-8841 Greg.Halich@uky.edu. 311 CE Barnhart Dept . Agricultural Economics University of Kentucky Lexington, KY 40546. Can You Pay $300/acre Land Rent with $4 Corn? . Commodity Prices.

kayo
Download Presentation

Can You Pay $300/acre Land Rent with $4 Corn? November 18-20, 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Can You Pay $300/acre Land Rent with $4 Corn? November 18-20, 2013 Greg Halich 859-257-8841 Greg.Halich@uky.edu 311 CE Barnhart Dept. Agricultural Economics University of Kentucky Lexington, KY 40546

  2. Can You Pay $300/acre Land Rent with $4 Corn?

  3. Commodity Prices

  4. Fertilizer Prices

  5. Budget Assumptions

  6. Budget Assumptions Land Rent: • Not included in the budgets. → Subtract from net revenue.

  7. Budget Assumptions Machinery and Labor:

  8. Budget Assumptions Machinery and Labor: • Fuel, Repairs, Deprecation, Labor.

  9. Budget Assumptions Machinery and Labor: • Fuel, Repairs, Deprecation, Labor. • Based on Custom Machinery Rates. → Increased 25%.

  10. Budget Assumptions Machinery and Labor: • Fuel, Repairs, Deprecation, Labor. • Based on Custom Machinery Rates. → Increased 25%. • Adjusted to $3.50 fuel price. • Trucking – 15 miles (one-way).

  11. Three Soil Productivity Levels

  12. Three Soil Productivity Levels

  13. Three Soil Productivity Levels

  14. Three Soil Productivity Levels

  15. Following Costs Increase with Yield: • Fertilizer • Machinery and Labor • Drying (corn)

  16. Critical Budget AssumptionsSummary Does not include land rent.

  17. Critical Budget AssumptionsSummary Does not include land rent. Includes “non-cash” costs (e.g. depreciation/overhead, unpaid labor).

  18. Critical Budget AssumptionsSummary Does not include land rent. Includes “non-cash” costs (e.g. depreciation/overhead, unpaid labor). P and K application at removal rate.

More Related