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Frequent Contributor

Re: North Central Iowa Crop Tour

You would think the end users would have been smart enough to jump the bases up on new crop corn the last few weeks to try and get guys to plant more corn acres instead of taking PP.  With so much corn late or unplanted and the rest of the corn looking tough with all the rain, I doubt if many would be selling anyway, but it might have looked enough better to get some more corn in the ground.  I know 1/3 of my corn will be unplanted.  All of my planted acres will be feed to cattle as silage or grain.  The 1/3 I sell to my local end user will have to come from somewhere else.  I don't care if they do have to shut down or cut back because of lack of supply since they made no effort to entice me to plant corn this week instead of soybeans.  I guess they feel it is cheaper to bring it in on train from a few hundred miles away, instead of by truck from 8 miles away.

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Senior Contributor

Re: North Central Iowa Crop Tour

Yes, this Ethanol Plant I sell to has a 26 cent under Chicago for a new crop corn bid for Fall/Oct. Delivery. If they really wanted to entice more corn acres in North-Central Iowa they could have improved there new crop corn basis level.

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Honored Advisor

Re: North Central Iowa Crop Tour

The 10th of June or later in Northern Iowa makes no difference what the new crop price is, It is too late for corn.

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Senior Advisor

Re: North Central Iowa Crop Tour

How do you sell bushels when one has so many  P  P  acres

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Frequent Contributor

Re: North Central Iowa Crop Tour

289, I assume you were talking to me.  My point was that if the fall prices that corn users were offering were better, there would have been more folks plant some corn in June if they had the chance instead of taking PP.  My local terminal is $.50 under the spring insurance price.  Unless the price gets better, I'd be losing that much per bushel on the bushels PP covers if I planted.

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Senior Advisor

Re: North Central Iowa Crop Tour

I live in an area where PP is just almost unheard of, in fact I can't recall a single producer ever filing a PP claim.  I thought when the going got tough, the tough got going!

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Frequent Contributor

Re: North Central Iowa Crop Tour

Shaggy, your correct about "the tough get going."  However, when it rains or snows nearly every day since late Feb. you don't feel so tough anymore.   I have a few farms, that aren't flat and wet, they are rolling hill ground , that simply have never been dry enough to plant this spring.  Every time they start to get close, they get hit with another rain.  I have only had parts of 6 days that I spent planting this spring, and day 6 was spend replanting what was planted on day 5.  There was only 1 day of the 6 that was even close to good planting conditions.  I was lucky to have a couple farms miss a rain in Mid-May or it would only be 3 days instead of 6.  A 12 row planted can't cover 800 acres in only 5 partial days.  I know one guy that farms a couple thousand acre that only has 40 acres planted. He farms to the south of me that kept getting rains.  I''m right on the edge of missing the rains.  Few miles north and its 100% done, few miles south and its less then 50% done.

 

Once we got into June it was just a matter of running the numbers and there was no financial benefit to trying to plant anymore corn with the current crop insurance that grain farmers have.  I have enough corn in the ground to support the cattle operation and I have no insurance that pays to feed my cattle next winter if I don't get hay put up.  So most in my area have had enough. 

 

I farmed a few hundred acres on a creek bottom a few years back.  The 2 years I farmed it, I planted my bottoms but you would have to travel several miles either way on the creek to find other ground that got planted instead of just taking PP.  So I think I'm tougher then most and proved it by getting a crop in the ground in that swamp land we then neighbors didn't.  The only other time I've collected PP was in 2001, but it common for the big guys that are milking the system to collect some nearly every years in my area on.

 

Gotta get outta here to go chop hay in the mud again today.

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Veteran Advisor

1993 all over again

If you really want markets to get mucked up, just let the government get fully entwined in them. in 1993, the 0-92 program or whatever it was called, let farmers disk up harvestable fields of corn, and get most of their crop insurance without any drying costs, harvesting costs, and plenty of residual crop fertilizer from the unharvested crop. Just in my little neck of the woods, thousands of acres of better corn than what I harvested were destroyed. This created a corn shortage and if I would have waited long enough, I could have sold my 85 bpa of very wet corn for some pretty good prices, but what I had would not have kept well.

 

THis year, the economics of crop insurance again are going to create a shortage of crops and forages where it would not have to happen. I have seen prevented plantings where I could still go in and plant a crop of soybeans with my equipment if it was my ground. I don't know what you call what we have going on in Agriculture, but it sure isn't capitalism or free enterprise. THe smart money will wait for higher prices again is my thought.

 

Not to say that everything Government does is bad. Or maybe some of the bad they do is better than what the government does that is worse. Ethanol is better than mideastern war.

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Senior Advisor

Re: North Central Iowa Crop Tour

92774, I appreciate your explanation of your situation, but my comments weren't actually meant for you. It was meant for the few on here that have been talking PP from the get go and making it sound like they weren't even considering getting a crop in the ground if PP were an option. Yes, you've have been bustin' your rump to get crops put in with less than ideal conditions and you will be rewarded sometime maybe not this year, but someone in your area has noticed your hard work. Possibly someone who will be retiring soon and will be shopping for a GOOD PRODUCER to take over his acres. IMO, taking PP has lasting effects that follow you around long after the books of that cropping year have been closed. Thanks again.
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Senior Contributor

Re: North Central Iowa Crop Tour/ PP Acres

I can tell you that this is the first time in the 28 years that I have owned farmland that I have ever filed a PP Claim. Even in the flood year of 1993 in Iowa I was able to get my crops planted. Also, I have spent a large sum of money over the years investing in drain tiles on my farmland. It appears that I will get around $525+/acre in PP Payments on my unplanted crop acres, but I wish I could have got my corn in, rather than take PP. For some unknown reason, I actually like marketing my crop and would have much preferred to have corn to sell over a PP Payment.

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