cancel
Showing results for 
Search instead for 
Did you mean: 
Mizzou_Tiger
Senior Advisor

Peak corn

Lol. I see it has been brought up. Again.

And it appears to be talked about in terms of IA too

Now if I recall someone made some comments on here a few weeks ago about why 12.2 could happen. And part of those comments where because IA is a consistant state not a blow your doors off state like IL can and did do last year.

Call me crazy I guess. 2014 was the high water mark and the only time we crossed 14B and just barely did even so.

Not sure where we go from here as we have some macro headwinds too

FWIW. Going to look at a tract of land in the next few days to see if it's worth putting a bid on.
0 Kudos
11 Replies
roarintiger1
Honored Advisor

Re: Peak corn

Might want to rethink buying more land........with peak corn.   Smiley Wink

0 Kudos
Mizzou_Tiger
Senior Advisor

Re: Peak corn

has development potential 5-15 years from now

 

if I can get it bought right it will return 4% as is with potential for 5-6% pretty easy.  closer to 8% if I wanna drag my equipment across it.

 

i dont plan to chase it, if i get it done great.  if not o well.

 

land prices are not done softening, but location and future potential along with current return makes it worth a look

0 Kudos
roarintiger1
Honored Advisor

Re: Peak corn

I understand perfectly...........location, location, location....................

0 Kudos
ihtractortherap
Senior Contributor

Re: Peak corn

Will it return 4% stand alone , over and above taxes interest principle etc.?
0 Kudos
ECIN
Senior Advisor

Re: Peak corn

Hey MT - My people have been working with Cheapo's people to put up some dairyqueens and maybe a high end housing addition - if you drop out of the running - drop us a pm   Smiley Happy  

0 Kudos
Hobbyfarmer
Honored Advisor

Re: Peak corn

96% expense ratio.... pretty thin margin of error.

 

Profit margins can be wiped out with one bad day at the CBOT that it does not recover from quickly.

 

Too many variables for only 4%. 

 

The above comments are irreverent if you just want it and can subsidize it if necessary.

 

My point of most views is born out of barely surviving the early eighties.

 

No it will not be different this time if expenses over run income.

0 Kudos
hardnox
Advisor

Re: Peak corn

You won't get an argument from me as I've been a critic, since day 1, of the testimony on yield trend that was used to sell the ethanol program to congress. A decade seems enough time to declare me correct.

 

The other side is foreign production, global deamnd and the liquidity preference for commodity speculation, or lack thereof.

 

I'm interested in owning some corn calls in some fashion but am thinking that the financial washout may create a better opportunity.

0 Kudos
Mizzou_Tiger
Senior Advisor

Re: Peak corn

Seems everyone is running for the door today.

Could be a washout this fall

Fine with me. Hammer this thing dead to discourage SA planting. Cut a fatter insurance check. And maybe even trim NA acres.

Going to get bloody. Damn glad I have tin cans

New one supposed to be up in a month.

Maybe fertilizer will finally come down since commodities are getting hammered. Oil is dang cheap. Will make for an easy fuel Bill this fall
0 Kudos
Hobbyfarmer
Honored Advisor

Re: Peak corn

Liberty link hybrids are starting at $140 before negotiation even begins.

 

Liberty herbicide has been dropped in price drastically for next year  too.

 

Let the games Begin...

 

 

 

The new price points on commodities is going to gate cut many out of any new things.

 

Many others are going to duck and hide from the salesmen and auctioneers.

 

Why try to catch a falling knife?  

 

0 Kudos