my 6% operating profit to market value has been valid for 35 years. Departed from the rule in last5 years, doesn’t meant it is invalid just means it is not valid at the moment. With the steep run up in farmland values it make it hard to achieve. In my opinion higher commodity prices should allow a 6% return on current values, provided commodities are marketed to best advantage. Although farming is confronting high inflation in diesel, fert, labour and machinery costs, will almost certainly eat into profits especially if we strike a drought and low production.
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