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Ethanol industry asks for help. CCC direct funds.
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JonSCKs
Posted 4/6/2020 09:14 (#8169151 - in reply to #8169137)
Subject: Corn Acres are FALLING FAST. probably cut 1 million + acres alone in Ks.


I don't have time to document it but..

Farmer A) No Corn.. keeping his wheat cover crop
B) cutting 2,000 acres of Dryland corn in half.. going to Sorghum
C) and D) switching a pivot to feed.. 
E) cutting back on dryland acreage

Kansas was THE ONLY STATE which ADDED Corn Acres last year post the Weather rally.. we added like 300,000 give or take.. we are VERY PRICE responsive.. given the poor yields and the collapse in prices.. WE WILL RESPOND again.. 

and yes.. even to the point of summerfallow.. Why grow a crop at a loss..??  bank moisture.. wait for the fall and HRW Wheat?  In the 1980's the problem was finding storage.. if you make a decision today.. with no demand.. and no place to go.. do you decide to raise as much?  No.

That is what is occuring here.. I would guess that we've lost.. 20%.. 25% 33% of the dryland corn crop here.. at that Rate and I know that the rest of the Country doesn't view it like we do here on the fringe.. but at that rate.. we MIGHT not get 90 million put in.. on the collapse in prices alone.

THIS IS REAL People.. That's what I'm seeing here.

If they go to sorghum.. probably a good thing.. A) China may buy it.. B) we can still crush that in the ethanol plants..However, your already giving up the top end... which.. if the shift in weather is from wet to dry..???  Maybe that's what should be happening anyway...???

The Dakota's.. I doubt they get their intentions in for the same reasons.. plus weather..   In order to hold onto production.. and I haven't even talked about the slashing in inputs.. 250 corn guys LOST $$$ here.. too much N.. 185 bu Corn guys were profitable.. skip the inputs.. just grow a crop.. is the mentality here now.

PRODUCTION WILL RESPOND TO THE PRICE CRASH.. if we have 3+ years more to go.. can our country afford that?

How much livestock will have to be culled as a result.. even if we kick the virus quickly..??

The EASIEST way to shore up the collapse is through the CCC above.. and they can regulate.. modulate it if it gets better.. or worse..

jmho

Makes sense to me.

If we cut a third of 4.3 million dryland corn acres in Kansas.. that's 1.43 million acres.. I have NEIGHBORS who are doing MORE.. some 100% NOW!!

I sold Corn to an ethanol plant the first week of March +0.30 basis + 3.85 board = 4.15.

Today you are looking at sub $3 cash for this fall..

We will respond to that by trimming.. 1.5'ish million acres.. and slashing production from 800'ish to probably 550'ish crop.

That is what the MARKET is TELLING US to DO.. so we will.

Personally I cut my dryland Corn acres by a third last fall.. and went to Wheat.. the rest of the guys are doing it this spring.

The First 4 guys I delevered seed to ALL cut Acres from 10% to 100%



Edited by JonSCKs 4/6/2020 09:31
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