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Generally farmers are always optimistic that prices will go up. I'm not so sure I feel that way. What do you guys think.
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Everyone talks about how bad farming economy is but everytime a piece of land is up for rent its getting ran even higher by farmers trying to be bigger. Small guys can't compete yet hear more complaining about how they can't make it from the big guys while the small guy just goes at it.
Agriculture like most our economy is due for a major correction. Maybe it just me, but I dunno how a person continues to overpay land rent, and land prices, or pay to repair machinery. We bought a hydraulic end today cost us $101. Ag has a lot of problems, and I dont have all the answers, and I hate to say it, but maybe the record high bankruptcies are just the beginning .
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And what way is that correction going to go? Everything is supply and demand driven and for some reason nobody gets that our gov’t keeps enticing us to plant corn and beans by giving us pennies for payments on acres, SA keeps expanding their agriculture thanks to China and US tariff war once their infrastructure gets better I mean we won’t be the leader in anything pretty soon, and then you put et...
Well, we may need to adapt to be able to thrive. Try some different farming methods, adjust crop mixes, grow what the market/consumer asks for, diversify our operations, etc... Don’t “put all your eggs in one basket”. Let us not underestimate what we can provide.
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**** i am wrong but commodities always seem to trend back to the Marginal cost of production. i think if you look at commodities as whole this is true. There will be some variations but i never see the day that corn and beans will be lucrative for an extended period of time. Hope i am wrong.
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As long as the USDA can come out with any report it wants with figures that just don’t add up we will be in trouble. The RFS is being taken about and the law broken even after we are being told by a White House how much they support it and love farmers. Now with the corona virus I am afraid we are going to be in even bigger trouble
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yes I agree,our own government killed us last year. If we can not have real information and numbers we con not make any good decisons
As long as government is in ag and the industrialization of ag continues, ag as we know it will plummit and eventually be gone. Land is quickly marching into the hands of a few and that will eventually be into stockholder hands. When ag is fully integrated vertically and we all work for a conglomerate prices will skyrocket but there won't be any family farms. Be honest about it. We'll be able to f...
I think the future looks very bright, but then again, I’m a contrarian.
You are correct that most farmers are optimistic, especially young producers that have not been through tough times. The more optimistic and full throttle ahead you were from 2010 to 2017 the better off you were especially if you had the right livestock and grains. That can not always happen, the government has really helped lately or things would be a lot worse for all. Stay optimistic but eve...
corn and soybeans current high ending stocks coupled with future production creates a massive supply of grain, strong US Dollar making US commodities less competitive, production increases in South America. All of these things doesn't present a recipe for prices to increase.
I am looking at five years out. I firmly believe that protein based meat will change ag as we know it..Another major point of interest in perhaps five to ten years is electric vehicles (EV) How much ethanol does an EV use? None. *************** Iowa city Iowa
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I agree the last four or five years have been really tough for dairy and not much better for growing corn and soy. As far as a big rally and corn I doubt it We had a catastrophe last year with prevent plant and we saw the prices hold some what steady, no big rally. Hopefully if we can get the China deal straightened out and get some trading partners we can get back to the $4 maybe even $4.50 corn...
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Coming from a dairy that recently sold out couldn’t agree more we’ve spent the last year making a lot of adjustments to be able to keep going with grain hay and beef it’s getting more and more not worth it feels horrible being the generation that stopped milking after my family’s done it for 108 years 365 days and every morning when you walk out to no lights on in the barn
I agree with the bank part, they are nothing but a bunch of jerks....but they are trying to make a profit. The Farm Credit system gives back a portion of your interest paid in, so much better
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Until times get tough. Ask older guys what FC is like then.
Yes dairy is tough, when I first read your reply I was talking to an ex dairy farmer that just sold his cows 18mos ago. Prior To your respond I actually am getting rid of some ground and taking a job for the local Helena dealership as an applicator. I was always told by my dad that you can’t have a job and farm. At this point I don’t think I have a choice and I can’t take on any more risk. Of...
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I have been waiting for a turn around on the dairy side of things for 5 years. We might see small bounces for short periods of time, but long term ,it don't look pretty....we are so good at raising crops, if it goes to 4.50 -5 bucks corn, we flood the market. Best thing to do is find a niche, or do something for off farm income.
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Things definitely do not seem promising out there. Dad always said with an election year prices always go up. Right that appears to be our only hope. Big Ag companies are starting to feel the pinch with all the late pays and bad debt. With the big dogs feeling the pinch hopefully things will turn around. Government always seems to cater to the big guys. Things have been against us for what s...
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Explain your comment about government always seems to cater to the big guys..During 7 terms on FSA board, never once a payment limit on smaller ops. Right now, if you look at the SBA loan terms, it favors the smaller businesses. Historically I would suggest you have I backwards with the government. Equipment mfg’s however are just as you say, and that is harmful to the future.
They will figure out ways to keep feed / food prices down, because that is in the government's best interests......you can see we are getting increasingly more pressure from other world markets, for the easy com and beans, and wheat.
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People are going to have babies and people need to eat. Need to figureout how to make it on $4.50 spring wheat, $3.00 cash corn and $7.50 cash beans.