I can`t help but think us farmers are being asked to use our equity to be the sacrifical lamb to keep up the facade of "deflation". Think about it, we are asked to buy inputs for the same price that they were when corn was $7. Now cash new crop has a "2" in front of it and we are expected to ...I supose go to the bank and "just bite the bullet...inputs will be cheaper next year"...oh really? how do we know that?
When are the seed companies and fertilizer companies and chemical companies going to "share the pain"? If a black swan occurs and corn goes back to $7, inputs won`t go down. If farmers bite the bullet in the 2015 crop, there`s no guarantee there won`t be another bullet to bite for 2016 if prices don`t improve.
Was $6, $7 corn really on that precarious of a perch? A year ago $7 cash corn now $3 and falling like a rock...is this what it really took...a huggggggge crop! (one I don`t see looking out this window) and prices get knocked into less than half?
My gut says there`s something fishy. i would imagine this few months of lesson learning has everybody "taught" like a whip on a donkey. As soon as corn can be sold anywhere near $4, there will be alot of sellers willing to go 3 years out. But if they can, they might be smart, what do I know. 🙂
