Question of the day

[kraft-t]

Do you think farmers that need money do a better job of marketing than those that don't?

In looking back at past performance, I wonder if I was more focused at looking for market opportunities when my personal budget was tighter. As opposed to todays putting the grain in the bin and forgetting about marketing.

Jens comment got me to thinking that when one is on a tighter budget, you just might be a tad more focused on finding a sales opportunity. Storing does not guarantee a better price, yet alot of folks do so because they have the bin.

[ray h.]

    It has always been my oppinion that farmers that have had a lot handed to them seem to price an ag commoditie sometimes without paying themselves the proper rent and storage,or wharhousing.Therefor thowing in a little cost of production just because they can and not even realizing that they are doing it!

[Mizzou_Tiger]

Do you go to Vegas with full pockets or empty ones

Duhhhhh

[kraft-t]

I usually don't gamble with borrowed money.

[pritchh]

My impression is with the pressure of needing $$$ you make poorer decisions  on avg.

[Shaggy98]

The farmers I know who are needing $ are forced to sell off the combine. I would imagine they don't have much of a marketing opportunity, just sell it when it comes available.

[sw363535]

I am with pritch money pressures tend to stop the mind from looking for other options.  Marketing options are few when you need the cash.

[Palouser]

Cash flow should always be arranged. Period. However, if a person has been in the game for any length of time, has crop insurance, and hasn't been hammered several years in a row with drought (like some of the SW has) then there should be plenty of room to make judicious marketing choices. What options are really needed? The back stop is still the commodity loan which may not even be 2% interest yet, at a principle level that would take almost catastrophic events to go negative.

[kraft-t]

I don't borrow money for living expenses, for operating capital or speculation.

I will borrow to buy real; estate. Probably not the best policy but I'll not go through the trauma of the 80's again. Don has oats in the bin and that's the way it's gonna stay.

I do make advance sales when future cash requirements are known or when prices are exceptional. I wonder if new crop beans should be sold.

[sw363535]

just joking Kraft,  but  you won't borrow to speculate but you will borrow to buy real estate???

These days what's the difference?

I do agree with your point but these days  land is speculation.

And what difference is it that equipment and most other expenses are at low interest rates when the price tag goes up 10+% per year.  In effect your paying for the borrowing of your own money as well.  It always takes more of it.