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| One year. We got one year to collect on short premiums and it’s really easy in hindsight. Now what? Sell next year for 10.50? And buy puts? Double up on a short position?
To be fair I think this dip will be short lived and that may explain why other inputs aren’t in a rush to meet grain prices at the bottom.
If we are going to blame land prices tho, we should also be able to blame market makers relentless shorting algos. And we should be able to blame greedy corpos milking the farmer with their monopolies on inputs.
The reason land prices are high, and my granddaddy told my dad this over forty years ago, is that the money is in the real estate. “You can’t get rich growing commodities. It helps pay the bills, put food on the table and send your kids to school in new shoes but it doesn’t allow enough of a margin to get wealth. The moneys in the real estate”
The wealth generated in farming has always been in the real estate. So can you blame farmers for making the one move, paying top dollar for land, that has consistently been a winner?
And if you asked most of the farmers around here what the 10yr -2 yr is, they wouldn’t have a clue , so expecting them to become world class hedgers and marketers is unrealistic imo
Edited by Deltamudd 9/1/2024 11:31
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