nc ks | brokedown - 12/20/2024 09:13
Why would it help the bigs more thought it was on a per acre basis? And if it is capped at 250k wouldn't that actually benefit the smaller producers more on a per acre basis. I would think the bigs would also have some bills to pay and aren't those proportionally larger. We aren't small but not big either just don't see how this benefits one more then other.
There is a lot of efficiencies to be had at the right size of big. It also takes longer to feel the credit crunch if at large size especially if you paid off a lot of debt during these good times. A lot of bigs using last years harvest to pay for things instead of having to cash out this years harvest to pay the loc off. Things being able to be done in house rather than paying someone else that has to have a margin. It isn't cookie cutter because there are good and bad managers at all points of the spectrum. I feel like even the good small or starting operator has less room to sweep the bad under the rug and move forward without bank scrutiny and so are more affected by bad years.
Seems like the 250k to a moderately large farm is going to do more than 12k to a small farm. When all the bills are paid anyway, 250k lets you do something strategic. 12k will help, but enough to help be aggressive on a piece of land? If the 12k is spent making it so he can get transport loads of fert or improving the shop so he can do his own wrenching or something like that...then it is a pretty valuable 12k, but how much of it is going to get spent that way?
Edited by kb ag 12/20/2024 14:29
|