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Honored Advisor

Re: You ain't going to like this

Hey SW, there is something to be said for being independently wealthy and farming, if your combine isn`t working right, just buy a new one.  But if you don`t have a stash of cash, you`re one breakdown from having a very dour looking balance sheet in these nickel & dime times.  Every acre that can be planted is, no more "bad" farmers these days, the throttle is wide open regardless of the market conditions.   So, it shouldn`t be surprising that given enough time we`ll deal with years of below prices.  And I`m the first to admit I bought into the "peak oil" commodity boom thinking we were in a new +$5 corn plateau and wide open production would be needed as far as the eye could see, 9 billion hungry mouths to feed and such.

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Honored Advisor

Re: You ain't going to like this

Well every half baked part time expert knows the answer the other guy needs and Ive seen many times when bad decisions lead to tough years.

But..... the last 10 years have been a bear trap seldom seen....  There were no good or bad decisions ...... there is just a break down of agriculture economics that could not be avoided unless one was headed into retirement in 2008 or 9.  In that case timing couldn't be better.  

Hindsite is always perfect and we will see how it shakes out, but there is not a way to not have sacraficed assets to survive the last couple of years .

 

Eventually the farmer experts are going to face a day when they can't get the rent they want or sell the asset at the price they think it is worth....... or afford to farm it.  And then look back and have nightmares over the opportunities they passed up being greedy.  

 

And naturally.......... Property taxes will keep going up...

 

So my suggestion is that we wear out the equipment we have and dump every field that raises rent and get in a better position of net worth so we can afford to finance our next cell phone..

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