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Jim Meade / Iowa City
Senior Advisor

Grain Income Below Break Even

Illinois is forecasting that income could b e below cost of production for Illinois farmers for the next xeveral years.  It makes a huge difference if your land is paid for.  That farmer can weather many storms that the buyer or renter must ight thorugh.

 

http://www.agriculture.com/news/crops/cn-breakevens-sliring-in_2-ar35155

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3 Replies
hardnox604008
Advisor

Re: Grain Income Below Break Even

Not to worry.

 

Iowa Caucuses just around the corner and whomever wishes to be king will have to promise to do something about this intolerable situation- probably plenty of money from the savings on food stamps.

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smokeyjay
Advisor

Re: Grain Income Below Break Even

One part of managing risk includes positioning your business so it can weather all ups and downs of the economy, including land prices.
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Kay/NC
Honored Advisor

Re: Grain Income Below Break Even

Jim, I wrote about the neighboring tenant on the field next to us in the land rent thread. He stopped by to haul off cotton modules yesterday. Mike was outside, so stepped across to talk with him a while.

Turns out he has decided that his wheat this spring was a break-even at best. Prices and yields were good, but custom harvest and additional fertilizer, coupled with a shorter bean yield on the double crop, have convinced him not to plant wheat this fall.

Maybe it is the Irish in me, but the grays and browns of fallow fields are really depressing, once you turn the corner at Christmas, a winter stretches out for weeks that never seem to end. The last five years of seeing winter wheat have been a pleasant respite from dead stalks and stems. I'm going to miss the green.
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