Posted 5/20/2020 07:58 (#8268946) Subject: Government bailout and forward priced grain
First off, let me say the amount of government interference in our "free markets" is borderline criminal. Especially since most all of these programs are after the fact and appear to be made up as they go.
With that being said, how does this affect bushels of grain placed in the bins with delivery contracts for February through March at the local elevator? By harvest, I had nearly 100% of grain priced. Half sold at harvest on forward contracts and the rest sold in early spring on forward contracts. By April 1st everything was gone with cash in hand. Are any of these bushels eligible for anything? I'm asking for clarification.
Will I be upset if I don't get a payment on any grain? No. But I am upset that this is just another thrown together program that bails out some and doesn't distribute equitably. And the reply of "just be thankful you had all your bushels sold" doesn't sit well with me. I had my bushels sold because I keep my break even cost of production low, and used that number to sell bushels at a profit. No luck involved.
I apologize for the rant, but I taught beginning commodity marketing to farmers for over 10 years and it feels like the government just threw out 10 years of my life. Why? Because I was trying to help producers become better at marketing, knowing cost of production, and treating their operations as a business. But now a program just showed up saying "don't worry.....we're the government and we're here to help....so you don't have to try too hard"
Again I apologize, but this really was not well thought out. I could go on by life is too short to spend time thinking about government bailouts. I sincerely hope everyone reading this is healthy and enjoying their spring.