The Rural Voice, 1987-12, Page 60MA
Elam
MUTUAL "'M INSURANCE
Established 1884
ATWOOD, ONTARIO
Coverage for Farm, Home and Auto.
For Information Contact the Agent in
— Denstedt Insurance
— Paul Goetz Insurance
— Hammond Insurance
— Knight Insurance
— Landon Insurance
— Milverton Insurance Brokers
— O'Grady Insurance
— O'Reilly Insurance
— Smith Insurance Brokers
— Wylie Insurance Brokers
HEAD OFFICE — 130 John
Phone: (519) 356-2582
Milverton
Fergus
Atwood
Brussels
Listowel
Milverton
Listowel
Alma
Arthur
Gorrie
Harriston
Street, Atwood,
your area.
519-595-4923
519-595-8711
519-843-5985
519-356-2873
519-356-9029
519-887-6476
519-291-1605
519-595-8108
519-291-2639
519-638-3149
519-848-3938
519-335-3193
519-338-3847
Ontario, NOG 1B0
1-800-265-2389
K.G. JOHNSON LTD
St. Jacobs, Ontario NOR 2N0 519-664-2277
(Inedaia)
ULTRASOUND PREGNANCY TESTER
Call or Write Today For 1987 Price List
Ontario
Bob Gillies Ayr
Chris Hills Seaforth
519-632-7368
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58 THE RURAL VOICE
ADVICE
WEIGH RISK OF
GROWING CROPS
If your livestock operation makes a
profit and grain is available to purchase,
does it make sense to grow your grain?
It comes down to one thing—budgeting
— not market price but budgeting.
The following example considers
average yields and prices and also
shows the effect if we get top yields and
top prices (or low yields and low prices).
This range between top, average, and
low is the risk you are taking by growing
the crop.
For example, if corn were to lose $46
an acre at average yields and prices and
the odds were one in six that you might
make $43 an acre if everything went
right or lose $136 an acre if everything
went wrong, then the risk you are taking
is that you could lose $136 an acre to get
a chance at making $43 an acre. The
chances are one in six that you will get
either one or the other (or something in
between), but can you afford the loss?
If you have 50 acres, that potential
loss is $6,800. Is it worth the risk for the
possibility of making $2,150? (I realize
that in some cases there are extenuating
circumstances, such as getting quality
hay, which are hard to budget in, but
how many of these extenuating circum-
stances can you afford to allow for?)
The figures for corn shown below
are estimates of high and low prices and
yields. The other numbers are from
1987 Crop Budgeting Aids. The costs
shown are simply the cash costs of
growing the crop. You might be able to
grow your crops cheaper than this, but
by the time you consider machinery
costs and depreciation, your time and
overhead costs and debt, all of these
numbers will be optimistic. You must
use all coats, not just cash costs, or you
will be sadly misinformed.
CORN
Average Yield (T/A) 2 (80 bus.)
Average Price ($/T) $100
Budgeted Profit ($/A) 5-46
Top Yield (T/A)
Low Yield (T/A)
Top Price (SIT)
Low Price ($/r)
3
1.5
5130
580
High Profit to expect ($/A) $43
Low Profit to expect (S/A) 5-136
OW. J. Grexton
Ag. Rep.. Wellington OMAF