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Red River Valley | The last few days there has been a lot of talk about less acres in the very near future -- LIKE NEXT YEAR
Hear many saying they won't plant at a loss just won't do it -- most of them also seem to be backers of the Grow it, Bin it, sell it crowd - so If your in that group how do you know what your breakeven prices will be ???
This year started out with about 8 months to sell at prices that must have been above breakeven because everybody planted everything they could get planted yet very few sold any of it ??? but know your saying the market needs to show you a profit before you will plant the next crop. --- sorry I think that will be a tuff sell PERIOD
Some are a preaching raise anything but C,B,W some even telling others to graze it couple of thoughts for everybody - 1) Minor crops are called that for a reason - never seen them pay up when the main crops are cheap - PERIOD
2) the country is already paying every cent it can for Calves not sure there will be a lot of money in them if 5 MA more goes to grass or grazed wheat and by the way won't that just cut feed demand for the others ??
Even a chart showing how the planted acres droped from the high in the 70's down to the low acres in the 90's seemed the poster of the chart was attempting to show that farmers cut back on planted acres when prices got cheap problem was that it took the US government to be come the worlds biggest landlord for those acres to go out of production. News flash that's not happening for quite a few years lot's of equity to burn.
even the seed companies are laughing at the farmers moaning about not planting -- read on dtn today about the fact that the seed companies have no intention of cutting prices and in fact plan on raising them 4% they simply believe that the farmer will understand that he can't afford low prices and low yields.
lastly after here of how planting a double crop hurts the first crop and the second crop and the following years crops my guess is we maybe can raise total production by not double cropping at all.
Last Statement I will make is that if the crop production can repay the cost of growing the crop less land cost, living expense, and even some machinery cost. the crop will get planted because for the most part farm land has no value if it is not farmed.
I know I have been told many times that the new generation of farmers are to smart to plant at a loss - been told they have spreadsheets so they are smarter than those dumb farmers of the 80's
as always time will tell | |
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Lots of talk about less acres a coming
