|
WC MN | Beet guys in my opinion are not immune. Very little control over the situation. Seed is very expensive with not much for options, diesel is a major expense that does not drop with a lower payment, the marketing is out of growers hands so there is nothing you can do there, and acres have to be planted or there are penalties as far as I know, I believe in the past southern MN stock holders were PAYING guys to grow them because it was cheaper than the fine. Not to mention some pretty big holes left on balance sheets after the drop in stock value.
There is some pretty old money in some beet growers hands but I saw some figures that with no stick rent and only $100 acre rent that it was basically a losing proposition. Plus next year I would imagine insurance payment price will be much less than this years.
My thoughts could be way off but I'm just going off of information that is available to me. I do not raise beets or own stock but have in the past.
Edit for spelling
Edited by IALTO 8/3/2013 15:39
| |
|
us farm report
