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EC SoDak | 20% inflation in 4 years or not, this market can be depressed a lot further for quite some time (IE 2014-2020 prices). Basis then will do some work to keep things moving along, but eventually the grains will get puked out. Folks will burn through equity built during their good times to keep going, because that’s what we do. Eventually things like equipment, inputs, and rent will start to adjust when the farmers money is tapped out. Locally, regionally, domestically, and internationally farmers/markets will jockey for who can competitively produce for the market. Then, down the road 6-8 years, we will have a bull market and we will go through the same discussions again. Rinse, lather, repeat.
We need demand for our ever expanding production. I remember folks saying on here they’d rather bankrupt their farms than have CO2 pipelines and the programs that require them to increase our demand. You may get your wish. Now Brazil gets to fill that demand, here and abroad.
Edited by SoDak Farms 8/11/2024 22:28
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3.12 corn and 7.90 beans
