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| Prices have to be sustained at a low level for an extended period of time before producers will change their spending habits. We aren't there yet and might not be for a while yet. There has been an opportunity to sell new crop corn for 4+ every year for the last how many.... That isn't a situation that anyone could call 'low prices'.
When feed prices were very high a few years back, I couldn't do anything to make pig prices higher, and all I heard from the banker, tax man, and others close to my situation was to cut expense. Trim feed ingredients where possible, delay repairs that weren't completely necessary, cut outside labor, look at everything... is it necessary or not. Line item scrutiny of every living expense, try to make it to the other side.
I don't see grain producers cutting back anything 'here'. New vehicleS (Yeah plural) New house, 4X4 utilities, ski trips, cruises, restoration projects, another motorcycle, bigger boat, whatever trips their trigger.
NOW....I AM NOT SAYING THAT YOU CAN'T HAVE NICE THINGS, NOR AM I SAYING THAT YOU HAVE TO LIVE LIKE A PAUPER. I'M NOT SAYING THAT YOU CAN'T TRY TO KEEP UP WITH THE JONES' IF YOU THINK THAT YOU HAVE TO, but sometimes one must take a look at the situation and come to the conclusion that it makes sense to 'wait till next year, or let's see how this year goes. A little common sense could go a long way. | |
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When does farming react to low prices?
