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Central South Dakota | What guys over east don't get is we can produce corn a hell of a lot cheaper than you can. With $300+ land rents and runaway land costs many were already bleeding capital before the report, depending on how far they push corn down, its just cutting into my profit margin yet, but I can still be profitable. If they take another $1.00 off corn, how many guys over east may think a lot harder about beans because it's easier to slash input costs?
The best way I can describe growing wheat the last two years is if you corn belt guys knocked $1.50 off you corn price and then give the end users at least 5 different discounts to use against you and anyone of them has the potential to knock an additional $.50-$.70 out of your contract price. Plus you don't know the premium scale before you contract because the end user sets it based on market conditions at time of delivery.
Gosh, why don't we want to plant much wheat out here? I dunno. | |
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Where did the corn acres come from?
