At what age did you learn that 125 is more than 100? Can you even remember that far back?
That’s why you understand that dollar cotton means nothing if your cost of production is $1.25
“Prices are tremendously high, and the first thing I do is figure out exactly what my input costs are – I mean to the penny,” says Mark Kimmel of Itta Bena Plantation in Itta Bena, MS. “I spend the winter on that. Then I look at the crop prices and decide what’s the most profitable to plant within the realm of my equipment.
“I sell year round and I’ve already made some corn and bean sales for 2012. It goes back to knowing exactly what your input costs are. That’s what it takes,” he continues. “If I have a profit, I’m going to start selling. And you always hope that your first sale is your worst sale. I never think about how low that first sale was because it’s making money. The main variables, really, are diesel and fertilizer. But everything is going to fluctuate. That’s why you have to know exactly what your costs are.”
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