Mark Movall

@gwiesefarms @KellyGarrett75

@KellyGarrett75 I have had multiple farmers increase equipment values this year. It was just more common in 2022, but still happening today!

Equipment values can go up? I’ve never experienced this

@gwiesefarms And I still want to know how Mark knew to offer less than his competitors when the bids were sealed?

@gwiesefarms You must keep these two things separate. The seller will always remember selling for less but forgetting the reason why. And offering to pay a higher cash rent for the next 3 years will turn into you paying higher cash rent for the rest of your life. Don’t be a Mark.

Mark was part of a sealed bid to buy 200 acres from his landlord. As a part of the sealed bid negotiation, he was able to offer a lower amount than the competitors in exchange for paying higher rent over the next 3 years on an additional 1,000 and he was renting from sellers. This helped the seller save on capital gains tax they would need to pay after the sale. Mark benefited from needing less cash for the purchase and lowered the finance amount in a high interest rate environment.

Working capital = current assets - current liabilities Having ‘cash’ available protects you from downturns in ag and poor yields.

I was inspired by this dudes toughness all season. Played through quad pain from week 2 on and fought for every single yard. Whatever the team needed, P-Mac would do, and do it with all his heart. Can’t wait to see his toughness manifest itself in many ways throughout his life!

FACT: The farmers who contact me most often make the most money. They aren’t wealthy because of what I am telling them. They have done well because they are constant learners and humble enough to get advice and feedback from others. AKA they are investing in themselves.

Seed Cost Per Acre What it is: Total seed costs divided by planted acres. Why it matters: Helps evaluate input cost management and compare seed strategies.

@BenRiensche Josh seems to be a bit tone deaf.

It’s not just how much debt you have — it’s how that debt is structured. The right loan can free up working capital. The wrong one chokes your cash flow.

@ArlanFF101 Exactly why yield model assumptions the first week of July are a waste of time

Most assume that the #corn yield is set in July when the crop pollinates, and that is the time when weather has the greatest impact on yield. But August weather also plays a big role. Heat, or the lack thereof, impacts seed size, and therefore yield. #oatt

@CBKimbrell A guy once told me if you’re going to give up on your crop, you should do it on the first day not the last

So if your corn currently looks decent, do you run fungicides when the corn price is below your insurance guarantee, or save the money and hope things don’t get out of hand?

Farming was so much better when we didn’t have people guessing yields like @StoneX_Official and @profarmer and @FBNFarmers @USDA and @CMEGroup and all the other super yield estimators. You all remind of the GIF below.

@gwiesefarms Giving advice looking in the rear view mirror. Hindsight is always 20/20 bud.

Take Mark. He had 60,000 bushels in the bin. Held out for higher prices. Grain sat 8 months. Now he’s forced to sell at $4.25. But… his operating note is 8% interest. That alone cost him ~$13,600, or $.22/bu. He’s not selling at $4.25—he’s selling at $4.03 after interest.

I’m an ag lender who works exclusively with farmers. Every summer I get the same phone call: “Hey, I’m out of room on my operating note. I need another $300,000 to finish out the year.” Here’s what’s really happening—and what it’s costing them 👇

@Hgalvin22 @VaporTrail505 👍🏻

@VaporTrail505 @markmovs Sacred Heart?

When your son decides that you need to donate new hoops. 🤦🏼‍♀️

First Place in the 3-on-3 tournament at BVU 🏀

TEAM DOGE!

@hathshireberk @gwiesefarms There is no point. Secondly if you feel your selling in a down market you also have to feel that your buying in a down market. It’s all relative.

@gwiesefarms What’s the point of the 1031 if you’re selling at a loss and no capital gain?

I’m in the process of preparing to bid for 160 acres of farm ground on auction this week. In order to move forward with the purchase, my family has decided it would be best to part ways with our existing farm (112 acres) and sell it through a 1031 like-kind exchange. We bought the 112 acres just under two years ago, and it has been good to us financially. However, shopping the property around with some neighboring farmers hasn’t quite gone how we had hoped. The best offer we received is $15,600 less than what we bought it for (not to mention the $20,000 in closing costs we had to get the farm bought). Farm ground is typically an appreciating buy-and-hold asset class. When you try to sell during a downturn in the agricultural sector (which is where we are), losses can happen. My verbal offer to sell for less than what we bought it for was met with some resistance from my financial team. Here is how I explained it to help generate a better understanding of my vision: You buy 1 share of Microsoft stock for $16. Over the course of the next two years, you experience returns of $2/year ($4 total). Now you are presented with the offer to buy Apple stock for $19. You don’t have an interest in owning both stocks but do like what the Apple stock has to offer. If returns continue as you expect they will, this Apple stock should return you $3/year. The great thing about this Apple stock, is if you put an extra $4 into the investment (on top of the $19), the stock will be worth $26 per share in 2 months! Would you sell the Microsoft stock for $15? This is a $1 loss from what you bought it for, but it already made you $4 gross and $3 net. The Apple stock will continue returning $3/year going forward. Would you put the extra $4 into the Apple stock? The gain from putting the $4 into the stock to increase its value is $19 + $4 = $23 $26. By making the extra $4 investment, you can net $3 in 2 months! Compared to the Microsoft stock which had a net of $4 in 2 years. I have an agreement in place to sell my 112 acre farm contingent on my team making the winning bid. I’ll let you know how it plays out.

So many questions on this one but let’s start with are you saying the appraiser potentially missed the mark by $600,000?

@gwiesefarms Do you think Walt’s lender will sell the farm he just bought under the market with selling carrying the contract at 0% on the same day or the next day as the recently updated local elevator Walt owns? And will the same auction company conduct both auctions?

You can grind away making $10,000/yr raising a crop for 10 straight years (10x$10,000=$100,000), or you can buy the local elevator, fix it up, and increase its value on your balance sheet by $100,000 in 1 year.