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| This isn't a surprise except that it took this long to happen. I can still see markets go up for no apparent (or fundamental) reason because they have before. There are players that can buy our market 100x and sometimes they make the rules. However, like any business there are cycles to deal with. The market doesn't care about my kids, my truck, house or anything. I'm not owed and neither is anybody else. Trying to run a business with an entitlement mentality will not work.
On the other hand, looking for ways to deal with the challenge IS the business of farming. If prices stay low long enough, it means there is cheap grain and adding value becomes less risky and more attractive. It's not that I'm in favor of old time farming, but there was a reason for how they ran their businesses. In the same way we have been one dimensional (grian only) for a long time. The thought was to specialize because it's more efficient, but the market doesn't care about efficiency either. Dang. I think you'll find the market doesn't care about any of the improvements we make in production.
These days there are lots of options to limit risk with livestock - grow for "the man" under contract, buy and grow them yourselves but you'll have to set up transportation and marketing (that "the man" does), find a speciality market - red pigs taste better right?, etc. Start your own feed mill, do custom work, sell seed, plant alternative crops, etc. I'd start with running your COP as low as it can go - less tillage, trade down equipment that can't pay its way with lower prices, go generic, use less costly seed brands, etc.
I realize we all like getting paid enough to afford vacations and nice things, but it doesn't always work. The key is being flexible and not locking yourself into long term payments for wants. | |
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6.75 soy target short term.. next 3 or 4 years lots will be gone
