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Honored Advisor
Posts: 18,031
Registered: ‎05-13-2010
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Re: Where To Save $100 Per Acre

If bankers are saying to trim $100, the elephant in the room is rents, especially if they weren`t lowered last year. 

 

Some are going to produce like John Henry right up until the banker closes their bar tab and takes their car keys. And who knows, perhaps this is a saucer bottom and in a year or two we`ll be back to $6 corn again...I don`t think so, but could happen. 

 

This year surprised me I thought more would cut the frivolous fungicide treatments, highboy sidedressing and elite hybrids, but some really went for it and if there was to have been a turn around in grain prices they weren`t going to be the only one in the neighborhood raising a sub-250 bushel crop.

 

It looks next year will be different with what appears will be a much lower crop revenue assurance guarantee and fewer chances to lock in near what in the past we considered a breakeven price.