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| Technology.
GMO crops came out and all the sudden a guy could handle more acres.
Equipment technology followed, stuff like auto steer sped up productivity. Larger tractors and sprayers cut down on man count needed and acres a day went through the roof.
Next we have advancement in traits and genes where yields increased.
Irrigation equipment you control from the palm of your hand.
Farms grew and bushels increased.
Next thing you know we have overproduction and simple supply and demand takes hold.
Margain tightened and guys kept having to get bigger to stay in business.
Today we have crazy inflation that continues to suck profit Margain out of crops.
For example the cheapest cotton stripper you can buy new is over a million dollars far as I know. Insurance alone on one costs more than a new stripper did in the early 80’s, not counting a payment. You have to farm really big to even own one, I know guys with 5,000 acres who can’t justify it. | |
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So what caused this?
