East Central South Dakota | The "poor me pity rag" isn't a tool in the tool box to be a survivor in this economic climate. I can not understand all the doom on here. I know lots of people that are totally sold up to their guarantee on soybeans and corn. The market gave us months of profitable prices to sell. The insurance price is 10.16 and 3.96. On a revenue product your revenue is set at 10.16 x guaranteed yield. If your sold up to your guaranteed bushels, your protected on harvested bushels and the price drop is actually giving you more bushels that are insured---revenue staying the same. The reference prices of $3.70 and $8.40 for corn and soybeans in the farm bill are generating revenue in corn and soybeans are getting closer. Do you want to be a seller at prices below a free hedge in the farm bill ? Recognizing a sale above the reference price in the farm bill and the insurance price in crop insurance when above your COP is a good thing to be able to recognize. These are all tools to be used in a marketing plan that is on a hard copy piece of paper that you can lay on your bankers desk. COP, crop insurance and the farm bill can all work together in tandem to sell your risk to other entities. Your neighbors that understand this are at a competitive advantage to those doing nothing.
I am sorry, but corn at 5 dollars and soybeans at 13 dollars will bring little to no opportunity for producers that want to expand----everyone can make that work. The guy working his butt off in town or the guy working his butt off with livestock to add value to his grain cannot compete with a grain farm that has 2000 or 3000 acres at 5 dollar corn and 13 dollar soybeans----$200 to $300 net income/acre on 2000 acres can't be made up by working in town or by feeding a few cows or pigs. A $50 dollar/acre loss on 2000 acres evens things up a little. Their are very few people on here that would not be willing to add 20% more acres to their operation. In high grain price climates those acres hardly ever come to market at a level you can extract a margin on. The time to expand is when people want to get out or are forced out. Sounds cold, but it is simply reality. Use the tools in the tool box to recognize opportunity to survive, because there will be opportunities in other people's failures.
EDIT........ sure is a shame how people on here can't be polite. People consumed by party political hatred that their guy loss or their guy won. Content is turning into a political whining contest with meaningful content leaving.
Edited by white shadow 6/28/2018 13:07
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opportunity lies with others failures......
