What is the most bushels you can raise per acre and still lose money?

Question

Just finished harvesting 120 acre field of wheat that went over 160 bushels an acre. It’s for seed and we have a good basis so I was able to sell it for $5.9 per bushel.   I still lost money.  Anyone else have any stories like?
here are the details

Revenue
$5.9x160=$944

Rent $500
Irrigation expense $150
Fertilizer $150
Seed $20
Chemicals $55
Equipment/field work $65
Harvest $75

Net loss per acre -$71

Answer

switch the fertilizer from traditional to Agzyme liquid. It will save you money and boost your yields. This fertliizer has boosted my corm 20%.

Answer

Could you have baled  the straw and sold them for a profit?

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I think everyone in  your area needs to rethink what they pay for rent. I don’t feel this is just in your area tho. I see a lot of guys paying high rent and turning little to no profit. Why work so hard for nothing? It’s all for their ego. While talking with local loan officers, they state a lot of guys are barely hanging on and about to lose everything. They can’t get them to back off the spending to have the newest tractor at the coffee shop

Answer

Definitely need to drop that rent. I’ve never seen $500/acre.

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I’m pretty interested. I wanna see more pictures and wanna know more about the different crops you guys can raise. I assume you’re somewhere on the Palouse ?

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$15,000 per acre if you can find any to buy.

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55 in chemical? I am spending 15 and that’s with 2 rounds of fungicide. What are you spraying?

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Holy shit

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I'd say if your paying $500 per acre rent the problem is looking at you in the mirror every morning.

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Don’t you loose the nutrients by burning off the field also?

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I'm not afraid to raise a small grain that just breaks even if it means I can grow some N and get a yield bump on the following crop. I've seen lots of studies that say you get a 10-20% yield bump on corn after wheat and a bump on beans, not counting fertilizer savings or improved soil health if you grow some N, something to graze, or other cover crop. Marketing the wheat can be the issue in my area...

To answer your original question, without giving it much thought or punching numbers, I would say I am willing to loose $20-50/ ac on no more than 1/4 of my acres IF it means picking up an ADDITIONAL $100-150/ac, that couldn't be captured otherwise the following year, or maybe spread out over 2 years. For cash flow right now I'd prefer to at least break even.

This is going to vary so much though from farm to farm based on risk tolerance, cash flow needs, dept load, etc.

Really it's just an investment question. How much are you willing to put in to get how much out? If you loose $75 but it lets you gain an additional 500-4000 the next year on setting up a great crop like what you are talking about I'd say that's a pretty good deal.

Answer

I'm fortunate to be farming in pretty much the best place on earth. I enjoy discussions like this and it's great to hear about 160 bushel wheat and 300 bushel corn. This year I'll be covering more than 4 times the acres for that amount of wheat, making a small profit and being set up for something better next year.
Be positive about your farm; brag your heart out. If the grass truly is greener somewhere else, give it a try.

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I'm just curious if rent is $500 per acre what does land sell for?

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Here in western ND I've heard rents fluctuate according to crops.  50 per acre for small grains  1400 for potatoes.  maybe you could do something like that where you pay a more fair price for the crop you are raising

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I farm irrigation ground near Walla Walla Wa. and I've never heard of $500 rent! Ours is about $200 maybe up to $300 under a pivot.

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It sounds like growing wheat and losing some money is just the cost of doing business,  if your making that kind of money the next year then wheat loss is just part of the variable cost of growing what ever makes you $700-$4000.
If you want to make $30 a acre on wheat and give up the other revenue move to North Dakota.

Answer

I have a land lord that farm in Oregon.  Says he can raise 200 bushel wheat and it doesn’t pay.  He mostly raises flowers and vegetables.  I think he said 1300 acre farm with around 30 employees.  It is a different world out there.  He had never seen his families 80 acres so he stopped by to look at it.  He was as amazed how much stubble was standing in fallow ground as I was about his farm.  That I farmed almost 10,000 acres with only some seeding and harvest help.  I believe your story.  I think he owns his land and doesn’t pay rent.  Or his family does.  Every farmer dream is to own their land then be able to put some money in the bank.  We usually just try to buy more land.  We need to stop competing against each other so much for land, buying or renting.

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So were you asking for our opinions or doing this to ****? Feels kinda like a brag

Answer

Rent is $500 per acre? Good lord. I’d say that’s a big part of the problem

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What is the most bushels you can raise per acre and still lose money?

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