Farmer A acquired the 24 year lease (with the option of an...

Farmer A acquired the 24 year lease (with the option of an extension) on a 100 hectare Lake Bed that floods from river systems 100's of Km's away every year. Due to it's abundance of Moisture after the flood waters receded, he grew a high grade 18 tonne/hectare corn crop every year. He then on processed his corn producing free cash margins of $1500/tonne.

Farmer B thought himself to be much more clever than Farmer A. He purchased a much larger 100 year, 1000 hectare property reliant on rainfall alone. However he only produces on average 8 tonne/hectare of poor quality corn due to the inconsistent rainfall. He then on processed his low quality corn through a similar processing plant as Farmef A producing only $200/tonne free cash margins.

Both Farmer A and Farmer B are producing corn. Both have the same input costs to grow the corn and both have a similar costing Capex Processing Plant. Who would you rather be? Farmer A or Farmer B? DYOR.