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ray h.
Senior Contributor

No one sees it $$$

    Farmers need to relate their pricing to the old standard of gold.Saw a segment the other day saying a dollar was equiv to 50 cents of yesterday.Could it be that 3 dollar corn and 9 dollar beans are realy equating more to 1.50 corn and 4.50 beans. Equipment,tires,supplys,parts,fert,and mostly fuel because it is relevent to every thing are properly related to the real dollar value.You guys are realy getting ripped! Just figure this,if you are in an area where land prices have doubled,gold standard wise it is not even half of what it was back in 08.Go figure!

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10 Replies
buckfarmer
Senior Contributor

Re: No one sees it $$$

Yep, I'm feeling it. The first thing you mentioned (equupment) will be out of my budget for a couple years at least. No more tile either. I had a post going in business about how so many of those little things keep adding up.
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viperkev
Veteran Contributor

Re: No one sees it $$$

Ray.....I don't think making comparisons like that has any merit what-so-ever. For example, crude oil was under $20 per barrel in the 90's and it made absolutely no sense, but then peaked at over $144. in 2008 before falling to $36. later that year in the recession. Sometimes commodities over-react from all the speculation and if we don't grab a good price whan offered before the drop comes, well that's just the way it is. Absolutely nobody twisted arms to run the price of land up 2 or 3 times in 5 years. That is a farmers downfall........sometimes has a very short memory. History repeats itself and I would say that this is so similar to the 1980's and way too many that could remember that time seem to forget. My Father lived through that time and the outcome was drove into my head many times and I have studied price charts enough to know there are hundreds of examples to learn from.

 

Kevin

 

 

BA Deere
Honored Advisor

Re: No one sees it $$$

Oh it`s worse than you think because gold should be much higher, but the prices are manipulated.

 

http://video.cnbc.com/gallery/?video=3000301440#. 

 

 

We were way better off 10-12 years ago with the $1.50 corn, you`d play the LDP game and pick up a few pennies, you had counter-cyclical and direct payments ..with Uncle Sugar and a little marketing you could eek out $2.50 for corn.  But the inputs $150/t  28%, $150 potash and no one had yet told us that it was "impossible" to grow corn without Smart stack seed so we were paying $140 a bag for seed.

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viperkev
Veteran Contributor

Re: No one sees it $$$

There is another topic, farmers falling for Monsatan's "money laundering" of hooking farmers, hook, line and sinker to pay that much for seed. That is why I stopped growing corn in 2013 & 14' when prices were tanking to cut input costs. I grow IP soybeans and winter wheat so they don't have me in a "cage".

 

Kevin

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OKdon
Senior Contributor

Re: No one sees it $$$

Why should gold be much higher? I suspect you are claiming that the expanded production of the dollar should make the dollar worth less and should take more of them to buy an ounce of gold. In theory that might be right but in reality it isn't.

 

Gold is a commodity and not in short supply. Just like our corn and soybeans supplies seem to be ample.

 

While a cash infusion would normally cause inflation it's not because consumers don't have the dollars. Thus those dollars aren't increasing demand for consumer goods but increasing demand for capital investment.

 

You can compare it to a sickly man in the hospital and they are pushing narcotics to ease his pain. He doesn't become addicted because his pain requires it to produce relief. However, if he continues to use it for recreational purposes he will become addicted.

 

I don't see ahuge inflationary problem with the monetary printing presses. At least not until the consumer has money in his pocket.

 

BTW what type manipulation do you think has caused the gold to drop several hundred points. Price has killed demand on a plentiful commodity. What good is it with inflated values. Similar to your $15K acre that won't produce ample return for the cost of the investment. I'm sorry if you one of those gold specs that bought gold toward the high. Gold doesn't do anything and it doesn't provide profits without an inflating value. It's just shiney metal that sits there doing nothing. The only thing that makes it valuable is that someone else wants it. And if there aint any money to be made they don't want it.

 

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viperkev
Veteran Contributor

Re: No one sees it $$$

I wasn't implying gold should be higher at all, in fact I seen it coming down and haven't been into it at all or will be. I was referring to grains coming down! They went high enough to encourage more production across the world and farmers paid too much for land the last few years.

 

Kevin

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KSKid501
Veteran Contributor

Re: No one sees it $$$

Hint: He was talking to BADeere, who specifically said that gold should be higher...

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BA Deere
Honored Advisor

Re: No one sees it $$$

Oh crap, don`t tell him that, now I have to respond to Don  Smiley Happy

 

Well, manipulating the gold market down is necesary to keep interest rates at zero, it isn`t some big secret.

 

http://blog.milesfranklin.com/how-much-gold-is-really-out-there-not-enough 

 

So yeah, don`t buy gold, it is going lower it`s a rigged market.  Maybe pull a "Hedgie" and short gold if you can talk someone into taking the "long side"  Smiley Happy

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ray h.
Senior Contributor

Re: No one sees it $$$

    You guys are not getting what I am saying,your inputs,I do not care which you wan to take in to concider,are not out of line with thwe current value of the dollar.Your pricing is way more third world than you think. Yea,you will not buy a lot of iron for a few years,but when fuel,9which every thing is tied to is not third world priced,your production cost are realy not going anywhere.Equip will not be lower next time you feel you have a need or an tax advantage,it will be higher yet.Not trying to po anyone,just bringing up how low things realy are allready!

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