Central SD | SoDak Farms - 8/11/2024 22:10
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.
I don’t recall anyone say they would willingly bankrupt their own farm in the CO2 debate as I was one of the opposition. As far as I know we are currently running ethanol production at max capacity and am doubtful that a CO2 tax credit for a corporation will change my corn basis levels. As far as the US corn farmer losing out to Brazil production that is simply the EPA doing what they want when they want. They can and will change the rules any time going forward. The tax credit being offered to build the pipeline is simply an accounting gimmick to enhance political contributors. It produces nothing of economic benefit. Using someone else’s land against their will so we can gain financially is morally bankrupt and quite unnecessary. Ethanol can be made to stand on its own as it is necessary to keep our country moving today. Our future is up to us. The CO2 rabbit hole will only lead us to more government follies that will cost us in the long run. The inflation we are seeing is govt induced and is costing the next generation of farmers and ranchers opportunities to enter the production system. |
3.12 corn and 7.90 beans
