Reply
Honored Advisor
Posts: 7,494
Registered: ‎07-18-2011
0

Grain prices are too low when??

 

 

https://www.youtube.com/watch?v=9m_dT0wsrGI

 

 

 

Carnak the magnificent asks the question 

 

You know grain prices are extremely low when ???

 

 

My answer,

 

One of the best basis area's in the country sees lots of corn being chopped for silage.

 

I'm sure you have a different answer...

 

My Banker has a few comments on the issue .......... How do you know when prices are extremely low??

Veteran Contributor
Posts: 106
Registered: ‎05-31-2010

Re: Grain prices are too low when??

I know on my farm prices are too low when I have to pack up the truck and head out to work for the winter the day the last acre is harvested. Somehow this fall the spread from US to Canadian dollars is figured into chemical, fertilizer, equipment, repairs and fuel BUT NOT grains somehow Minneapolis wheat is $6.29 and here wheat bids are $5.05. It's outright theft is what these grain companies are paying even though in the prairies there was only half a crop because of the drought. I hear on the radio how farmers were holding more grain through the summer. that was total BS, the grain companies were cancelling trains because they couldn't source enough grain. Now I'm hearing about ridiculous yields .... "best year ever" ..... how in the world do they figure that we could grow a monster crop on 3/10" of rain all summer yes, not even a half inch. i'm spending $250/acre to grow a $100/acre crop doesn't make much sense to me.

Senior Reader
Posts: 2
Registered: ‎06-06-2017
0

Re: Grain prices are too low when??

Same here in California,

Lots of grain corn being chopped for silage. Without a doubt, many growers are opting for a retreat from this grain market. Fortunately, there is enough interest from area dairies to alleviate some of the pain.

Honored Advisor
Posts: 5,251
Registered: ‎01-10-2012
0

Re: Grain prices are too low when??

I haven't had the semi loaded in months.

 

I rented the bins from my neighbor again.

 

When I traded pickups and had to stay with an XLT.

 

WHEN the local kid who got fired from John Deere, is turning  down work cause he's got more than he can handle.

 

When the local chem/fert livestock equip dealer has few pickups in front of his business. Coop Is closed on Sat.

 

Instead of going out for supper a group of us are rotating hosting.

 

When I told the body shop guy $1500/$1800 was too much to paint Fred...

 

 

Honored Advisor
Posts: 5,251
Registered: ‎01-10-2012
0

Re: Grain prices are too low when??

Fred is on the right

2017-09-15 09.23.39.jpg

Honored Advisor
Posts: 7,494
Registered: ‎07-18-2011
0

Re: Grain prices are too low when??

What every farmer hopes for ................... a pet that will stay in the yard.....

 

 

 

 

 " When a guy who can't think about anything but farming acquires a pet dino"

 

" When watching baseball becomes top priority"

 

 

 

Honored Advisor
Posts: 7,494
Registered: ‎07-18-2011
0

Re: Grain prices are too low when??

Whitesand

 

Great comments................... And the agriculture media ignores it......... The "taking advantage" of the "world market" is so obvious and so disturbing....

 

Corporate takeover of lobbying in governments and the corporate theft through global positioning...... They live under no legal limits in international trade and can utilize one countries laws against another..... in many more ways than just tax advantage.

 

 

Highlighted
Veteran Advisor
Posts: 2,774
Registered: ‎02-11-2013

Re: Grain prices are too low when??

if you listen to the media, including the agriculture media......or others, including the commander and tweet, things are wonderful

I have been thinking things have been bad for a while.........at least they have been here.....but I'm often told i'm wrong.

We blame the elevator........they are not without sin...$1.20 basis on wheat right now...then the traders....we love to blame them,

but we are told it's the "market", we are just trading...then the USDA is mentioned, after all, it is all based on what they say....

and what do they say ?  we have too much of everything.

As someone mentioned, why is that our cost keep going up an up an up, yet, we are given no consideration in the market.

even in the economic textbooks, it says as the cost of production rises, so does the price of that item....it is not happening

that tells me, that something is interfering with the "market".

 

I hear all of you, I feel what your saying.........el cheapo is going thru it also, this is a bad day, the 15th, I've got to go figure out how

to do things for another 30 days......the expenses, and then health insurance due the first of the month.......

I've been told a lot of times, people are not broke, but really a cash flow problem.....the cash is not available at that time.

in some cases that's true.......I think we would be ok.........if only the preposed income would come in !!!!

 

same here as many.......dried up crops.........

 

now here is the really bad deal..........yes, a yield loss, but you will get the crop insurance, which is usually more than the

cash price.....but overall income is lower than what you had hoped for by a long shot.

 

then the kicker........in a couple of months, when "whoever" figures out things are too cheap, up goes price.........so there you

set......a little check from the elevator, a slightly bigger check from insurance company, and then several bills from the

chem, fert, seed, fuel folks......if you are lucky, your pile is bigger than their pile.......

and as you look at your little income, and your big expenses, you have a knot in your stomach, then you see the price

go up, you have nothing to sell.......yes, if you were in the market, you could have made that money that it went up,

but how many farmers do go into the market ?  I'm told only 15 to 20% are in it.......

then the question is do you go futures or options ?

then were are you going to get the money to do it ?  go to the bank, tell them you want some money to get into the market.........

I don't think you will be welcomed.

 

so who is at fault.......maybe enough of that to go around........but SONNY has some hard questions to answer......HIS department

is much of the cause....the data they are producting if not accurate.

then, the question must be asked locally, just how much do we have to make at the coop....maybe we need to remind them, we

are all spending less money, maybe they should.

it's laughable, the local coop was "bought out", now the new coop is spending money hand over fist, the number of new

pickups, vans and SUV's has grown even more !!!!   and they have NEW sprayers and spreeders.......of course they have

to pay for it, so they are going up to $7.25 an acre !!!!

now tell me, if we are all hurting out here, why in the hell would you as the coop spend all that money, and then charge

even more ?  They also have their fingers in the elevator business......and the basis keeps getting wider........

is there something wrong with this picture.......or is the worry starting to get to ole el cheapo ?

 

folks, I thought I used to be kind of smart, and understood things..last couple of years, I don't anymore, and find myself

trying to figure things out....that have no answer.

 

well better go to the bank and see if there is anything left.

 

the question is.......are you broke when there is no money in the bank, but you have millions in net worth in ground ?

 

Veteran Contributor
Posts: 106
Registered: ‎05-31-2010

Re: Grain prices are too low when??

To answer that last question yes, you are broke. The value of the land hasn't changed in my mind from when I bought it. 4 generations have slugged it out and if the land value goes up it's irrelevant in my books. Oh sure some will say you can borrow a lot more against it but at the end of the day the land isn't producing any more that the value goes up. So now a quarter section has doubled in price I can borrow enough for a new combine, great ... but if I have to sell the land in the end to pay for it then it's kind of redundant. You would never see google or any other company sell the land they own to keep operating at a loss. All I know is if this land is worth millions then there will not be a 5th generation farming in today's world.
Senior Contributor
Posts: 358
Registered: ‎05-16-2010
0

Re: Grain prices are too low when??

You know grain prices are extremely low when....  The local Coop is saying where's the corn.  I'm in an area in SW MN that a large coop covers from the SD border to east of Blue Earth MN and as far north as Storden and Jeffers.  We have decent looking crops in this area and you would think bins should be emptied or being emptied for fall by now.  The experts(USDA) say there is a lot of farm stored corn out there, but the location managers are saying where's it at it's not coming to town?  May be other areas are different, but I have to wonder how much carry over we really have.