SW Wisconsin | indeeppigfarmer - 6/20/2017 20:06
Grain prices haven't been low in years, if youve been farming since the 70's that shouldn't be hard to recognize.
If you made good money in the 70's with half the yield, probably had more to do with the cost side of the equation as well.
Still haven't seen 1 acre taken out of production, so, 'Nope we don't have sustained low prices yet.'
I have seen empty feedlots/ hog feeding facilities.
If you think that todays grain prices present 'value' and can easily add value by using them, by all means buy a pen of calves, put up a chicken barn, whatever you want to do that will help increase demand. Don't wait for someone else to do it. It must be easy
e.
Of course it is the cost side of the equation taking up profit margin. It costs much more to produce now than ever before. (Gas was 38 cents a gallon when I started.)
And your'e right; except for some CRP acres and urban development, not much good land has been taken out of production. In November 2005 we had corn under $2.00 here. There was some adjustments to cropping plans around here. If corn sinks another 10% by next spring then maybe we see less planted in 2018.
And yes, there are tens of thousands of rotting dairy barns in this state because they no longer were able to add value and make a profit with rising costs. Mine included.
I am not saying that today's grain prices present great value to end users at this level. I am sure some end users have financial struggles at these price levels. But some how many were able to keep going with 4, 5, 6 & 7 dollar corn and up to 14 dollar beans.
The profit margin for raising grains is getting thinner. And with the ever increasing costs it will end up just like the empty hog facilities/feedlots/ dairies, etc. (farmed through the 80's)
And no, I am not going back to livestock again at my age.
However, I am hoping for higher grain prices by decreasing the supply or increasing the demand.
Cheers!
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