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Veteran Advisor

Re: What if ??

58  - That's  a  great  idea  - let's call Willy Nelson and  make  it  happen - maybe a '' farm  financial '' company '' match '' could be in the works ---       

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Veteran Advisor

Re: What if ??

elcheapo, the answer is simple, right in front of us and I know you are just egging us on to get it out in the open.

 

Cargill and ADM will start providing seed, fertilizer and limited operating capital and you will produce grain for so many dollars an acre.  You will be required to use best management practices as defined by the man.  You will never own the crop.  You will not be responsible for marketing.

 

On the other hand, if you fail to produce per contract  - well, ask your chicken farmer friends.  There may be some strong penalties in there somewhere, probably tied to the land.  If you can't grow it, someone else will be offered the opportunity.

 

I don't know if that means you can stay in your present house or if you will be required to move.

Veteran Advisor

Re: What if ??

Jim  - I  think  you  have  leaked  the  '' executive  session ''  minutes  &  as  far  as the  contract  fulfillment  clause - interesting  point  I  have  heard  in  discussion  with  some  our  folks  in  the  poultry  belt --- 

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Veteran Advisor

Re: What if ??

Jim, if America's largest row crop operation that is also partnered with a large investment firm is having financial problems, could Cargill and ADM do much better? When you have people literally paying to farm, why step in and take their place? Chickens and hogs are "easy" to mass produce with much less risk from weather and insects. It's much the same as why you don't see meat packers in the cow/calf business - too much risk.

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Honored Advisor

Re: What if ??

Surely jim is refering to that time when production drops off-----2 thinks are different this time,  1   I think we have seen expenses move to a level that don't allow belt tightening.  2.    biggest factor........ 75+ %(some say 80%) of the production is being done by less than 10% of the farms and we are not raising new generations of farmers that can step into that even when it is broken up.  Technology is going to keep the production model much larger than 50 years ago.  Either by technology's performance or its cost.

Until the computer tech boom the corps could not have done it...... now they can.  The world will stand in line for those jobs.  

Never makes sense to me why farmers would vote for open borders.  Think about it.  

 

One thing holding the US back ag. wise is a very expensive labor force compared to other areas of the world.(when costs like education, healthcare, insurance, transportation, housing, etc are included.) ---- Litigation also............!!

why else do we need to look at drone deliveries and automated trucks, driverless tractors --- otherwise we don't compete. 

Profit and productivity is still the motive.  Even if it all goes to the Chairman of the Party.  

 

 

 

 

 

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Veteran Advisor

Re: What if ??

SW  -  The   Orwellian  idea  of  driverless  trucks  has  a  tsunami  of  road - blocks on  the  horizon  - kinda  like putting  chains on  to  navigate  I-70  west  of Denver 8  months  out  of  the  year ,  maintenance  issues  in  route , detour on  the  Eisenhower,   the  list  being  endless , although  it's  a  nifty  cell  phone  revelation of  sum & substance or cute - The  cost  analysis  of  the  R &  D  of  this would  be  extremely  interesting ---      

 

Also , Feeding  the  world  seems  to  have  taken  a  detour  or  a quick over-recovery  ?  

 

Litigation being a '' perpetual ''  enterprise ---   

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Veteran Advisor

Re: What if ??

SW, we have plenty of young people that want to farm, they just don't have access to the land and capital to do so. 

Veteran Advisor

Re: What if ??

Blackland  - This  deal  of  high-spend-tech  AG  is quite interesting  -  a somewhat comparison being the saddle bronc rider coming to the rodeo with his  Sterling Silver spurs, Stetson Diamante , Lucchese Baron boots  &  $67,000 Denali ride  - only to  demount  2 seconds out the gate ---