SE Manitoba | ntexcotton - 3/7/2019 08:49
I'll disagree. When you take out the anomalies of the three price spikes from then to now, the price of cattle has kept up with goods and service increases. Look at what calves brought in the 60s, what a 2wd 3/4 pickup with roll up windows cost, what a 4020 with no cab cost and compare it to the equivalent spec'd item today. Technically, the open station 100 hp stripped down tractor today is cheaper than the 4020.
The first half of this decade was just a repeat of the early 70s in all of agriculture.
Maybe in your neck of the woods.
I remember pricing a 4630 with the works (cab FEL 3 pt and all the options) and it came to under $20 k. Can you buy a JD 145 pto hp tractor loaded for $85 to 90 k - - - I can't.
I'm also thinking of people who expanded (doubled in size) from profit with almost no debt in under 5 years. Can't think of anyone doing that today.
I was looking specifically at the cow calf guy and his share of what it costs when it hits the plate has dropped by a 1/3rd from the 60s until the 2010 range.
Maybe for row crop things are the same - - - would have to spend a lot of time digging. My info on the cow/calf guys share on the plate comes from a study done here in Canuckistan by the NFU (National Farmers Union) - - - I think it was/is sound methodologically
I know from a tradesman perspective the late 70's were the best time ever. I talked to one guy who told me about buying a house, pickup a car and putting money in the back all from one year's income (sure a heck can't do that today!)
If anything what I see is the dichotomy (have/have nots - - - maybe not the best way to put it but it is succinct) growing larger over the last 25 to 30 years rather than there being any shrinkage.
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