| westernillinoisfarm - 7/13/2018 07:51
Your right cheapest feed in a decade but the problem is having to buy an extra 6 months of feed while paying pasture rent. My math says the two together doesn’t work oh yeah I almost forgot cheapest cattle in a decade also and we’re on our second year of drought here. Yes I have crop insurance but that only covers 85% of aph when we have needed and been growing 10-15 over aph and just getting by pay mortgages and living expenses. The 15% that isn’t covered by crop insurance in reality actually becomes a 30% hit. How many people can do that very many years in a row let alone make it back up with the prices this cheap? $700 per acre with a 30% hit is a $210 per acre loss or $210,000.00 per 1,000 acres let that sink in. Im fairly decent with math I think. You Get Chicago price for every bushel short. No basis, no drying/shrink, trucking on those bushels. That makes up for most of what you are figuring as a loss for you. Those costs add up to a buck, give or take a little, but close enough. |
Cash prices
