Posted 8/1/2020 09:13 (#8408498 - in reply to #8408348) Subject: RE: A bushel of corn is the same everywhere
ottertail co mn
This is a good post.
Unless there is a huge new demand like ethanol was 15 years ago the market will be stuck in a rut. If the market gets to $4.50 cash how much harder will everyone try to plant millions of more acres and put fufu juice on even more acres than they do at $3 cash.
The little extra corn use from bigger pigs and cattle doesn’t change a thing when you use a billion less bushels for ethanol. Corn exports are down substantially yoy.
Getting rich and buying fancy new equipment will be harder to do than back a few years ago, but don’t worry you can justify it by increased yields. So spend all you can so your farm can increase yields on your farm, just like everyone else is doing. Not sure if everyone gets the math, but that works out to new records of production just about every year, someone posts a chart of it just about every week on here
When I buy corn for my feeders, I pay board price posted at a particular elevator close to me, the seller pays no hauling costs so that saves them a little bit. China buys grain at a posted price and pays the freight to get it to their country, same as I do just at a larger scale. I have a bin with some corn that is more expensive than what I have been paying lately, but I choose to buy the corn that is currently cheaper from my neighbor. He is happy because he is getting a better deal from me than the elevator. So, if you are not happy selling your corn for a posted price quit raising it or plant something different.
I am not a very good farmer but I am fairly good at math. My math skills told me I better do something different or I was gonna go broke and the bank was gonna be having a sale for me. I realize that many people are in way deeper than I was when it comes to be committed to corn and soybeans so a transition may not be as easy as it was for me. If the cash price goes to $4.50 I can be 100% corn and bean farmer over night and neighbors will be their willing to help me plant and combine if I pay them well enough.