| kb ag - 5/9/2025 12:50
It isn't about predicting the crap show, which it very well might be. It is about conducting your business in a manner that takes into account risk. What risk could hit you the hardest? Identify and have that risk covered whenever possible. They aren't ever going to give glyphosate away, but when it is $9 a gallon and it could go to $40, you might want to lay in a few years worth. If it stays at $9, replace what you used this year at $9. If it goes to $25, live off your reserves until it goes back down to $12.....then buy a little more.
I know I am being simplistic and you can't foresee everything or even close. And something will always creep up and bite you. We don't have to always outrun the bear. We just have to outrun the current slowest person running from the bear. There are still plenty of people driving new pickups and having their equipment serviced at the dealer that have 0 supplies in the shed for a rainy day and buy them retail when they need them no matter what the price is. Try to stay way ahead of those guys. Man KB, you are so absolutely correct on this subject matter. I feel stupid for not installing the infrastructure 15 years ago to put bottles at the binsite to handle tankers of LP and NH3, when it wasn’t so cost prohibitive to do so. And yet the cost at the time is what kept me from pulling the trigger. Dry fertilizer storage can be erected much, much cheaper on a cost per unit basis. Neighbor of mine just installed a 12,000 gallon diesel tank at salvage price from a local bulk facility being taken down. |
What would a weaker USD index do to commodities/exports?
