|
| I love this view on prices. Please don't tell me you don't make a penny more on your bottom line vs when corn was $3/bu (and input costs were significantly lower). If you can honestly say that you don't, then your buying decisions have changed in regards to machinery or other capital expenditures.
Do you feel that when markets go up that you, the farmer, are the only one that should reap the benefit of it? I don't, and think it foolish to believe it. So gross potential profit on an acre of land goes from $510 (170bu/acre @ $3/bu) to $2,400 (200bu/acre @ $12/bu) and the people that support your operation (seed salesman, seed company, fertilizer salesman, fertilizer company, machinery dealer, machinery manufacturer, agronomist, construction worker, etc, etc, etc....) shouldn't see any profit potential increase? Do they not take as big of risk as you, or maybe bigger? If you (or I), don't get a crop, we have insurance that will keep us fairly close break even (depending on your practices). Now lets say we have a crappy year, how do you think that works out for the guy planning to sell you a new combine this fall, or the guy in the plant building it, or the guy selling it, or the guy that was going to service it or the guy that is going to put up a new shed for you to put it in, or......? Screw them, I mean, you need to keep all that extra cash, right???
Do I think it goes overboard sometimes? Oh, heck yea, way overboard in some cases. I also think prices of those goods (seed, fert, fuel, machinery) goes up quickly when markets do good, but doesn't rebound nearly quick enough (or at all) when the market goes back down. People want their fair share of the pie as they are all taking risks too. To think it should go to just us is asinine. | |
|
Why not $8-$12 corn
