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jrsiajdranch
Veteran Advisor

From the parlo pit 4-26 ( a dumb dairy farmer question)

Why is a bushel of beans now worth more than a hundred weight of milk? 

 

June milk closed yesterday at 14.27.

 

Oh is this gonna be a fun summer! 

 

BTW I haven't planted any corn yet and prolly won't till middle of next week. Actually we may take off a field of hay that we are gonna ripp up this spring starting Sun.  SOme of the hay is over 18 inches tall. winter rye is also going gangbusters. 

 

 

That BSE cow deal is really strange but I really don't think it will have any long term effects.  Except that there is already some talk of making some of the regs tighter. 

 

Long term this could actually be bullish beef.

 

Be Safe.

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9 Replies
Hobbyfarmer
Honored Advisor

Re: From the parlo pit 4-26 ( a dumb dairy farmer question)

"Why is a bushel of beans now worth more than a hundred weight of milk?"

 

It is all supply and demand. If there was a 20% drop in milk supply as in bean supply and only 2 milkings a year there would also be a price adjustment.

 

I am still too wet for any of my crorn to go in, I could force some of my beans in today but why with the weather forcast for South Podunk country to be cold and wet would I want to mud them in and then have to spend a day or day and a half getting all the bearings on the rotary hoe working?

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k-289
Senior Advisor

Re: From the parlo pit 4-26 ( a dumb dairy farmer question)

Point well taken - maybe you  need  to  increase  your  volume ---  Ha   HA  

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sw363535
Honored Advisor

Re: From the parlo pit 4-26 ( a dumb dairy farmer question)

I'll match your "dumb" and raise ya.---(-didn't sound dumb to me, but that should tell ya something.)

 

Is there a point where milk becomes a feed ingredient?

 

 

 

 

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GoredHusker
Senior Contributor

Re: From the parlo pit 4-26 ( a dumb dairy farmer question)

I have to chuckle everytime I hear the words long term bullish beef.  The same can be said with the pink slime fiasco as it will eventually take 10+ percent of the beef supply away.  However, I question what it will do to demand when hamburger goes from 85 percent lean to 90+ percent lean?  We've seen it in the past when the health food nuts got hamburger down to 90+ percent lean.  People quit eating it because it was dry and didn't have the flavor.  The BSE thing can be the same.  If demand goes down because people fear the beef supply, I don't see it as being long term bullish.  The most bullish thing for beef today is gasoline prices easing. 

 

I try never to get caught up in why a price of one thing seems out of whack in terms of a price for another product.  I had a friend who is no longer with us once tell me he bought a quarter of dryland farmground for around 15-16 hereford cows.  Today, those same 15-16 hereford cows wouldn't even buy 10 acres.  Is land price too high or are cows too cheap? 

 

They can tighten the regs as much as they want, but it will just force more and more guys to dispose of their dead cattle themselves rather than sending them to a rendering plant.  Around here, more and more guys are already doing it as the rendering plant has started to charge for pick ups. 

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jrsiajdranch
Veteran Advisor

Re: From the parlo pit 4-26 ( a dumb dairy farmer question)

Hey Gored glad to give ya the laugh!  I know what you are saying on the price elasticity.  I keep wondering about that to, Seems milk is at that barrier right now.  AS to the correlating between commodities I know that can be a hazardous one, but I was just making a point really.  Milk is very much a developed worlds product,  Grains are in demand by emerging economies.  If this keeps up the rice in the rice krispies will cost more than the milk!

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jrsiajdranch
Veteran Advisor

Re: From the parlo pit 4-26 ( a dumb dairy farmer question)

I am already hearing grumblings about adding whey back into some hog rations! 

Not a dumb question at all!

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jrsiajdranch
Veteran Advisor

Re: From the parlo pit 4-26 ( a dumb dairy farmer question)

You've still gota rotary hoe!?????

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jrsiajdranch
Veteran Advisor

Re: From the parlo pit 4-26 ( a dumb dairy farmer question)

Yea that is what I am thinking. If I go and borrow 10 million first I should be really following the profesors plan!

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idalivered
Advisor

Re: From the parlo pit 4-26 ( a dumb dairy farmer question)

jr, why is milk cheaper than gas??? Or even soda pop?? I have a neighbor that milked for many years and he was complaining about some type of inspector ALWAYS finding something wrong in his parlor or milk room. Finally , one day he said "i quit". the inspector guy said "oh, don't do that!" the inspector realized (too late) that without his dairy customers, he didn't have a job.

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