Tuesday, July 3, 2018

Thee Oat Field

As another Lame Cherry exclusive in matter anti matter.

Jesus said unless a man figure the costs before building a house, the man may not have enough money to finish, bankrupt himself and become a laughingstock. In that, this is an exercise in figuring how to deal with 80 acres of pasture and farmland, divided up to about 60 acres of pasture and 15 acres of farmland.

For this, I am just going to figure that the rental price of the pasture would be 4000 dollars for the season.

The factoring in is the 15 acres could be rented to a farmer who would pasture the grass, for 100 dollars per acre. That would mean 1500 dollars in cash rent, or 5500 dollars total for the entire acreage.

What is though one was to plant oats on that 15 acres? It would not be free, but oats is 2.93 a bushel sold. The costs would be planting, fertilizer, seed and harvest, but in easy factoring, if the farmland produced 100 bushels per acre of oats, that is 1500 bushel of 4500 dollars.  That in net profit is close to the 5500 dollars for entire rent. Granted God still has to grow a crop.

There is another factor that the cost of production is a tax deduction, while the cash rent has not any deductions, unless one was to improve the land in some way, as in fences or the buildings.

It is always the tax catch in is my labor, my wasted money on equipment, worth the problems of risk, compared to "easy money" in one just sits there and collects rent.

Factor in though for the pasture if it was worth running your own cattle on it. Then that is additional profit and feed. Nothing is as easy as it seems in Jesus factoring in profit and loss.

There is the reality of real estate taxes too in 1000 dollars for this 80 acres which must be paid. Would it make more sense to just take the 5500 dollars, take the 1000 dollars off to 4500 dollars, and then if one had animals buy the oats and hay to feed them, which are tax deductions, to end  up with perhaps 3000 dollars which would be profit, after taxes.

The factors in this are your own oats, the factors in this are getting a farmer off your land, and another factor is around 1000 dollars for insurance for liability if someone his hurt on your property. That 3000 dollars is now down to 2000 dollars, without my having to lift a finger.

None of this is easy money. Bigger crops require fertilizer, fertilizer costs and the endless go around is the endless go around. What should be something in building a future as an investment, suddenly is like all life in looking like a good deal, and in the end your getting screwed either way your turn.

This is an exercise in commerce in the way real business works. Could one add the raising of their own food as in beef to this to reduce the cost factor? Yes but baby beef are still 300 dollars to obtain, still have to feed them almost 2 years, and butchering costs are 300 dollars, so in thee end free beef starts looking like it is ony free when you do not factor in the costs.

The only answer in this is what is always the answer that Monsanto and the regime set this up for the Nazi Conglomerates and that is to farm 1000 acres, in buying a million dollars of machinery, production costs, so that you can drive around in a pick up that is new, text on phones that are new, live in a new house, and not own anything as all you do is make payments like the rest of the slaves.

You should be able to figure out that something is really wrong with America and the world by the above example as you are impoverished if you do and work yourself to death if you don't.

Nuff Said