398 × $7.7 = $3,064.60/acre
Cost = $1,650/acre Profit = $1,414.60/acre Land cost: 200 acres $500,000 Machinery, storage: $500,000(?) Total land and machinery, storage: $1 million Operating cost: 200 X $1,650 = $330K Total cost $1.33 million Down payment 25%: $332,500 Profit: 200X1,414.6=$282,920 - mortgage $50K = $232,920 Self-employment salary: $100,000
Net: $132,920 Cash on cash: 132,920/332,500 = 40% Plus a shabby house to live in, you need half a mil to start. http://www.idahofb.org/index.php?action=commodities.potatoes
In 2011 Idaho farmers planted 320,000 acres of potatoes. The average yield was 398 hundredweight per acre. The average price paid to growers was $7.70 per hundredweight. Idaho growers spend approximately $1,650 to produce one acre of potatoes. |