| ncwi4450 - 8/5/2025 10:58
Does anyone remember when the price of oil went negative, to -$40/barrel? I guess you're right, it didn't last very long
Or in the early 80's, when the Reagan administration suggested dumping overflowing gov't warehouses of old cheese into the ocean?...but, then gave it all away in 5 lb. blocks to low income households. I was about 12 years old when our farm participated in the Dairy Diversion program - I think our farm signed up for cutting 40% of production for a couple of years? Anyway, remember feeding calves milk from the bulk tank to cut enough production, but updated our pipeline and replaced bulk tank with a bigger one during that time.
Later, there was the Whole Herd Buyout, where you bid a price on your entire herd to be culled. If selected, someone would show up at your farm and special tag your entire herd to be slaughtered. That program was not very well accepted by the public, or the beef guys.
So, if we ever find ourselves waiting in line at the landfill to dump corn, soy, or wheat, the bright side is it is likely the bottom......for at least a few years.
Hi ncwi,
Yep I remember it well. It was a lesson learned. For years, I said that we would go through a long period of low energy prices because price had a lot of energy to expend and it could not go negative. In the end, I was wrong, it did, and it expended that energy. What's interesting in that going forward is that move into negative territory WILL be responsible for the new ridiculous oil prices in the future - not whatever news headline is running rampant. Its why one part of why I am expecting new all time highs in the energy complex.
Once the major lows are struck. The next relative pivot should be in excess of 10 and 25 in corn and beans. Crazy high energy combined with all time highs in the grains - prepare for some serious inflation in crop production costs!
Take care
Edited by NEIAAG 8/5/2025 11:21
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Brace for impact....
