| ehoff - 5/8/2025 14:08
Take some time to understand the ag commodity cycle. This is nothing new just part of the cycle.
True.
However, https://youtu.be/JUxAS1d52_M?si=ccQEO53-5IDaGUG1
“Exxon Mobile started out refining petroleum for Kerosene. Gasoline, you know what they did with it? They dumped it in the river.. (uftda) until the World innovated around this energy product. They’ve been here over a Century. However, if they want to be relevant for another century.. They are going to have to change.”
Innovating roundup ready soybeans.. and taking an $18 billion Ag Commodity market into a $50 billion market after granting China most favored trading status.. and yes.. I get that we must adapt. However, easier said than done.
Ethanol has been more of a domestic market.. some described as a “bridge fuel” component. And take the average blend from 10.. 11 percent of a gallon up to 25 or 30% of a gallon in a shrinking market.. going forward.. as EVs start to invade.
And you’ll have to innovate into something else. SAF?
More Exports.. The deal with the UK does mention ethanol.. but the point is.. YOU MUST INNOVATE just to hold on.. to what you’re gonna lose.. as trendline yields.. South American expansion.. and unsettled export markets.. come.. but go.
It May indeed be the correct policy.. but punitive tariffs go AGAINST EVERYTHING I was Ever Taught about markets.
The pressure relief valve will be the value of land. What else can take up the slack? Technology has a price.. and it’s increasing..every year.
In fact equipment replacement costs.. are going parabolic. Even the status quo would put pressure on Ag Land. And that’s Clearly Not the case.
Edited by JonSCKs 5/8/2025 15:08
|
If the age of Globalization is over? Are Land values over priced?
