Death comes to us all. Life's but a walking shadow | This is a little off-topic but I had a conversation today with a ag analysis futures broker-trader type fellow who outlined a 93 million corn acre scenario based on high '14 bean acres to high '15 corn acres and the additional incentive that the current new crop corn bean price ratio provides. His argument was that high rents and new machinery payments will obligate Midwestern grain farmers to plant more corn in order to cash flow.
Now, here I have some of you fellows telling me that use of operating loans are widely used by Midwestern grain producers. If that is the case this would lead to the conclusion that such producers have high expenses, high debt and no cash that they are already operating on the edge.
I would like to know how many Midwestern grain producers borrow a significant amount for operating loans? Do 25% borrow 50% of the needed money, 50% borrow 50% or more? |
If 2009-2010 is 2014-2015 here it is...
