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05-09-2013 06:37 AM
I will admit, I am a moron when it comes to marketing, since I always believed you needed to own something before you can sell it. That said . . . I am having my morning cup of coffee here in the rural backwater, and of course watching Bloomberg.
They were talking up "Iowa farmland" this morning, but more important, it appears that someone (could it be Larry, Moe, and Curley and maybe Shep making the statement . . . I do not know! Well it is flashing on the screen that there will be "huge" corn inventories this year, so they must be starting to push the "rain makes grain" mantra.
Well . . . I think this is a clear indicator that the government is determined to drive down corn prices, with statements that lacks substantiation. I would say that if $4.25 corn is the price this fall, that perhaps the bloom will be off the land Rose, and we will see what
the ROI will be on farmland. The Government is going to crash the land market and the grain markets, and will again make "small farmers" out of "big ones". Soooo . . . the cheap seats here in the peanut section is a place I enjoy being, it is kinda nice observing what is going on in the arena, instead of being a participant. Pass the popcorn and get me another Corona. John
05-09-2013 06:41 AM
Interesting analogy Faust. One question, if we're in deed making larger operations smaller, what happens to all the additional land? More smaller farmers or just more acres averaged out amongst those already in existence?
05-09-2013 10:47 AM
Faust you know better--------it doesn't work that way--------- Small farmers will go. a few large farms are easier to regulate and are not so stubornly independant. And for the most part are well financed.
Have you ever seen a time when the # of farms declined because the large farms went out and small farms numbers grew.... never.--unless you count the times when usda changes rules to counts absentee ownership as a "farmer" or the flowerbox lady in a city.
A large farm goes out and makes headlines, while hundreds of small farms slip away quietly--- victoms of economic reality, poor estate planning, or generational "lifestyle" improvement etc.---------- the reasons are endless-----
Governmental activity has done nothing to change this reality.----------- They just redefine terms and labels to get the #s they want while life goes on unaffected.
Kansas has more ruins of farm homes than rural farm homes.-------------- an observation--------- not an accurate study.----- (another study I'd like to see is the number of non farm rural residents compared to the number of farmers living in urban locations------worthless stuff------- the kind government is good at.)