Pat H - 5/30/2017 08:33

Several folks are wondering why the market isn't responding to weather problems and it dawned on my that it doesn't look like we are responding to where the market is either. Some rents have backed off, but are still at unsustainable levels and folks are still paying $12K for B class ground as an investment (I suppose an investment that loses value quickly is still an investment?).

There is some switching to non-gmo corn seed based on seed price (pretty much same genetics) and not all that worried about a premium at harvest and organic just to take costs down, but seed companies are still close enough to selling out that there is no reason to change prices. You would think plentiful, cheap natural gas would mean nitrogen would be even cheaper than it is.

I would have thought the equipment market would be very hard hit by now since the machines are priced for $6 + corn. Maybe leases are getting creative to keep new stuff rolling out the door, but $450K tractors and combines are a tough fit with $3.50 corn. If we buy them, they will make them and sell them. I wonder sometimes if I just missed the meeting where everyone was handed $25M cash or are getting nascar-like sponsorship from equipment and input suppliers. They probably got a nice hat too.