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SE MN | I don’t recall the fall price in 2012 but I do seem to recall spring at $5.40 and RCR mentioned $7.55 so I’ll go with that.
If you had a 200 bushel APH and took 80% HPE then you would start to collect until you hit 114 bu/acre as opposed to 160. That is a difference of roughly $350/acre. And God help you if you had 160 bu/acre sold at $6.00/bu. There goes another $75-$90/acre to buy those bushels back…
So you produce 57% of a normal crop and collect $0…. I’ll pass on that one. If it works for you that is great news because you have cash and or equity coming out your ears and everywhere else. I am not in that situation.
Oh, and by the way, rent and inputs are going through the roof for 2013 and your competitors have a $400/acre leg up on you.
Let the good times roll…. | |
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The case for harvest price exclusion (RP-HPE)
