cancel
Showing results for 
Search instead for 
Did you mean: 
Contributor

USDA? Sonny Perdue? Are you listening?

The Mrs and I took a drive today from our place just south of Fort Wayne south to Shelbyville, located s/east of Indianapolis, then over to an antique mall a few miles from Edinburgh,along I65 south of Indy.  All fields are wet or flooded. We did see three planters in the field this afternoon raising a little dust in a small five mile window just north of Shelbyville. (Remember dust?) Since we had our farm equipment  auction this past March and I'm officially retired I guess I'm antique also.  Thank goodness she's  still keeping me.  We returned a slightly different route and saw maybe a half-dozen fields no tilled to corn, I assume.

 

Our farming community has an impending financial disaster in the making.

 

USDA? Sonny Perdue? Are you listening?

0 Kudos
16 Replies
Honored Advisor

Re: USDA? Sonny Perdue? Are you listening?

Congratulations on the good timing of your retirement.  Smiley Happy   I think it will be the last straw for some of us, but farming is no longer a penny ante poker game, we`ve moved to the room where they play with the purple chips.   One good thing is we have a POTUS that at least acknowledges the existence of us farmers and will write us an occasional check, even though most of us keep saying "No no, we don`t want any government money, let us just farm!".

0 Kudos
Senior Contributor

usda w. Puppet perdue are going

to  " DQ " out of paying Agri..much like trump " dq's " out of Everything.

 

Thee Only thing to Bail Farmers really is Higher Markets and possibly PP.

 

just plant some June corn and pray a touch is a good bet for some.

 

for others PP is a Cash return for prepping equip for next year.

 

the federal joke of supposedly paying for the Past 2 Years soy

market Losses, But based on only planting in 19 is the Feds 1st " DQ " excuse Out.

0 Kudos
Senior Contributor

Re: usda w. Puppet perdue are going

Plant for the MFP is designed to keep the markets from rising to fast. Hedge funds need to get out of shorts in an orderly fashion. Less PP claims for insurance companies. My guess is markets go up enough USDA says no payment needed.

0 Kudos
Contributor

Re: USDA? Sonny Perdue? Are you listening?

Yes...you are in the purple room.....this current environment is one that is doing away with the family farm as urban America sees it.    The inefficient, debt ridden operations get out of my way....and for others that farmed smart, working with little or no borrowed capital.  Land prices will be cheaper and making it much easier for people like myself to get bigger..   Thanks President Trump!    Of course I will go to the Socialist hog trough to get the government hand outs also....again thank you President Trump.  Calling it as it is!!

0 Kudos
Honored Advisor

Re: usda w. Puppet perdue are going

If all it takes for someone to NOT go PP, is a $2 MFP payment, then they really shouldn`t be going PP in the first place.  Because if we`re basically talking June 20th here?  and probably 35 bushel yields?  Very few will try jumping through that hoop for 70 bucks.   If you`re a gambler and you get 45 bushel and eeeeverybody else went PP and beans are $11 cash off the combine and you get a $90 MFP payment on top, that`s a lot of "ifs".

 

However if it`s a no-brainer to go PP and most go that route and our 1 billion bushel soybean carryover disappears and beans go to $11 what does that do to demand?   A "easy decision PP" artificially creates flash in the pan, supply driven rally that 10% of us will benefit from and 6 months later we`re right back where we started with $7 beans.and have to build demand at square one again.

 

No, we aren`t going to build on the 1 billion bushel bean carryover this year.  If all hands are on deck and weather cooperates here on out, a 400 million bushel carryover might be a stretch. With that, beans that are raised `ll be $10 and probably crop insurance income for most of us besides and we all live to farm another year.

 

Most of us that have insurance have the "fall price option" and that`ll probably cause checks to be written out even with a decent yield. 

0 Kudos
Senior Contributor

Re: usda w. Puppet perdue are going

Very few will try jumping through that hoop for 70 bucks.

 

My opinion is very many will.

0 Kudos
Honored Advisor

Re: usda w. Puppet perdue are going

In 2" range today alone, more may be on the way.

 

Many will be trying to pull the rabbit out of the hat, few will.

 

there is a real possibility of two or more some kind of bail out pmts. For this unprecedented disaster.

 

The state of Iowa has paid unemployment benefits on two previous bad years in disaster counties.

 

Sometimes the sooner you quit fighting it the farther ahead you get.

 

0 Kudos
Senior Contributor

Re: usda w. Puppet perdue are going, Good Post BA Deere

On the mfp, pp etc.....fall ins price option for beans etc..

0 Kudos
Honored Advisor

Re: usda w. Puppet perdue are going

From my chair, I wouldn`t think of PP even without the $2 MFP, because up til June 15 you get full insurance guarantee, then they deduct 1% each day after the 15th and I think the 25th of June they totally wash their hands of you and you must go PP...or if you`re feeling generous I suppose they wouldn`t force you to take the PP payment  Smiley Happy

 

The $2 MFP payment is nice and I`m not turning any money down, but I have bigger reasons for trying to plant if at all possible right up to June 25. I`m only 70% insured on beans and to take 65% of the 70% as PP payment, that`s pretty tiny..50bushel aph x $9.50 spring price x70%x 65% is about $216/acre PP payment. Where if you get it in June 15th at 11:59pm central time you have a $475 guarantee at least based off spring price. Maybe more with the fall option..much much more especially THIS year.

 

I don`t know, but if you take PP, it`s based off spring price of $9.50, right?

0 Kudos