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| as a hog producer and grain farmer i wish i could feed 3.50 corn to 60 cent hogs. one thing i know is i don't get a check from the govt when hog prices are low. i do understand that all livestock producers get a indirect subsidy in that they kept corn prices low from oversupply. it is cheap corn that help breed the oversupply of hogs that collapsed the market in 97-98. we did it to ourselves and it nearly killed us. but cheap corn in the 90's didn't mean that we were all lining our pockets that's just not the case. as a small producer (1000 sows) we have not made much money in hogs the last 10-12 years. cheap corn+ more hogs = low hog prices. if hog prices don't support 4.00 corn i don't think we can weather the storm until prices come inline. it is the small producer like us that will go out of business not the Smithfields and Tysons cutting back that will bring prices up. we just don't have the selling and buying power and deep pockets that the big boys do. i do believe the markets will find a equilibrium but its not a overnight thing. being on both sides of the coin i see huge challenges ahead for everyone. grain and livestock need each other for this whole thing to work and both need to be profitable. this post is not directed at anyone and i hope it doesn't offend anyone. this forum has been a terrific source of info for me and i am thankful for everyone here | |
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market prices - are they priced right?
