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South Central Iowa | You’re not in the fringe, your basis is too high. Your area shares a lot of similarities to mine, along with southern Illinois and Indiana, and most of Missouri. Tolerable basis, cheaper inputs, more difficult to farm ground, both in topography and yield reliability. That kept land values and rents more subdued.
Bigger point though:
We’ll keep expanding or maintaining the acres until price gets low enough to stop us. But then only if the government doesn’t put us on life support to keep pumping. So $2.50 corn and $6.00 beans on the board at least before we get to really bleeding out. When I say that ratio, if that’s our carry out next harvest, I would venture new crop 2020 will be corn at $3.70 and soy at $7.50. That won’t stop us at all, not the vast majority anyhow. | |
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