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| The real problem is significant price swings. Just like one of the earlier posts suggested rising rents after a 20 cent increase, there is the mindset that prices will just take off at some point so inputs/rents need to be out in front of that (or we need to be bidding so they go that way). If we were to stay around $4 for a while I think a lot of costs would start to adjust. It's almost like the $3 corn was so 'scary' that not much changed because everyone is going down the tank.
Overall price stability is what we are looking for. Profitability per acre, long term, isn't going to be huge, but if it's consistent it's better for long term business success. No one 'liked' $2 corn, but plenty of us made some money since inputs were relatively stable. We didn't have to worry about $200 swings/month in fertilizer prices. | |
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We just might pay for this later...
