Land rent will be more and more an issue as we head into the end of the year.

Here is a thought that should help you make a better rental decision. The most important factor is what kind of yields can you expect. If you only ask one question make this the one. Every bushel of corn represents approximately $3 per acre to the bottom line and $8 per acre on beans and wheat. Knowing the yield matters!

In a recent study by the University of Minnesota, high producing ground was found to be the difference between profitable and none profitable farms. Costs like fertilizer, seed cost, machinery, and even land rent were all considered. I saw the graphs and they were flat as a pancake across the board for all producers surveyed. The only factor that showed any correlation with profitability was having good ground.

Now, I think that marketing should have been considered too, but maybe next time. For those that work with us, you know how much marketing matters. Maybe it does not matter as much as good ground but it is close.

To me there is a very important next step from this analysis and most will not want to hear this. If you are not faint of heart call me and I will explain my thoughts on this next step. You may have already figured it out.

Yield matters!



Be safe in the fields.

Ron

651-301-9185