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Advisor

Ouch. $33B of $88 B Net Farm Income

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4 Replies
Honored Advisor

Re: Ouch. $33B of $88 B Net Farm Income

The cure for high prices is high prices.  The high prices we had are in our rearview mirror and the prices of inputs that we buy are still clinging to the past.   The "biggest liar" in the coffee shop 10 yrs ago saying "200 bushel corn and 60 bushel bean yields" now better increase the whoopers they tell by 50% to maintain their bragging rights.  The pasture and golf courses plowed up 8 years ago will stay in row crop most likely.

We`re in a period of transition.

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Honored Advisor

Re: Ouch. $33B of $88 B Net Farm Income

Much better than I would think...... that graph may be 40mmt too high when we realize this crop.....or we will continue denial so we can wreck our agriculture economy.

It is certainly our choice.

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Yet the farming operations i do books for and the ones my accounting firm does books for do not show anything close to that ratio....   So I have some evidence that this twitter claim is false..... or at least misrepresented as we have come to expect from the outlets he writes for.

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Honored Advisor

Re: Ouch. $33B of $88 B Net Farm Income

SW, I agree that with the harvest weather and S.A. dryness at planting, the world ending stocks could get a haircut.  I pasted a WORLD bean ending stocks to show that our low prices is a WORLD problem and we would have even if Trump continued the US`s policies of  kissing China`s butt. 

In the case of a soybean farmer, the payment was half sent out so far, that being 80¢ per bushel and that bushel is $8.50/bushel so far less than 10% of the bushel is a gov`t payment.  However, they are being tricky and saying "net farm income".  After the farmer buys $700,000 combines and $100,000 Silverados, his "net farm income" could be zero, even with the 80¢ subsidy.

Eyewash headlines could also be written on "I spend $110 per acre on seedcorn, yet I only make $20 per acre profit!!!!! My seed dealer gets over 5 times the amount of profit that I make growing corn!!!!!  And oh yeah Elizabeth Warren 2020!".

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Honored Advisor

Re: Ouch. $33B of $88 B Net Farm Income

I wish I could help your enthusiasm...... but I think the chirade will go on until usda is the only corn and bean planter in business, and certainly it will go on until the shelves are empty half the time.  We, those of us in the press and  who are just smarter than those who work with their hands, do not value a backup supply of anything.  We just want what we want when we want it........... and enough drugs to keep our children (the homeless) civil. 

We keep electing famous morons.  Or soon to be famous.

 

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