So when prices finally hit the fan now farmers are finally seeing whats going on!

[dave4441]

That is funny and I probably won't forget that for awhile. Like maybe never.

I trust people but I know what I am selling. Ever have a car salesman show up at your yard with a new car with no sticker, no knowledge of the options it has and ask you what you will pay for it?

Any seller tries to prove he has a higher quality product that is worth more money and every buyer of any good tries to claim it is a lower quality product and wants to pay less. Negotiation. Business. Happens in every industry every day. Wonder if vehicle dealerships have blog sites and they all talk about how badly the buyers are screwing them. Probably not.

[bucket]

It is about trust and relaying the proper info to the people you deal with.

I made a trip to another elevator furthur away than I would like , told them what I was bringing for a sample.

They went thru it, and told me to bring a load over.

I was up front and said I would rather not drive here because of distance and gravel. They understood and I made it clear it wasn't a reflection of them just logistics.

Took a load over, it matched to the sample. I didn't oversell it as a 1, but I knew it wasn't a 3 or feed.

I am happy they are happy, because they have issues with there crop over there. So maybe it can upgrade someone over there.

Price was the shits on this load but I thought it was tougher than it turned out to be.

All good.

Down the road it graded a 3 from the same pail.

[cottonpicken]

Lol,thats some good readin"

I just wish people understood how important external capital brought in by resources really is.

They may have an inkling but they really have no clue about what happens when it hits our fractional reserve banking system and how it gets leveraged up and the incredible magnification effect that touches the bond markets and absolutley everything else,you simply cant have a conversation about something as simple as the current account,most basic monetary thing in the world and nobody has a clue.

The average person spends his whole life chasing money but has no clue about it,not even taught in schools-unbelievable.

[farmaholic]

What surprises me is why you waste your time here. But I do read your posts hoping my "simple" mind can pick up something you lay down. If most don't have a clue, and may not, take the time to enlighten at least me, I am listening. Thank you.

[cottonpicken]

Sorry didnt want come off as ****ish and arrogant.

I really enjoyed the thread and agree whole heartedly.

The people involved in the spin off industries of what we produce maybe don't know the whole story of how important we are,the typical responce would be "it creates jobs".

But when foreign capital comes in you get a major benefit,its not internal capital.

Common enough lingo is countries trying to devalue to to boost exports yadda yadda yadda sure everyone has heard that.

But what is really happening is when those payments are given to the producers they get put into the banks in the form of deposits.

Those deposits are then leveraged up,in some countries up to 40 to 1 canada is better off with tier one being around 10-15%.

This is the current account basically out flows vs inflows,mostly covered at a national level but works at a provincial/municiple level as well.

So anywhooo the banks lend this out,somebody sells widget x to buyer ,and buyer takes his money and buys something maybe a bond or a stock or property,the government takes its pound of flesh and on and on and on.

Its basically the reason how japan has been able to hang on by self funding through its current account surplus.Now ending.Wonder why our lonnie is acting all ****ed-look at the current account,among other things.But imagine if we didnt have what we can export-think greece.

So basically so much more comes out of ag then meets the eye,those grain buyers property values,borrowing costs,standard of living,tax rates,healthcare social security,pensions etc,etc......

Its complicated stuff and you have to be into it to understand it,but you think the news or schools would touch on it once in a while.

[farmaholic]

Cotton, I do enjoy your posts and hope to learn something from them. I often hear you talk about the "impending doom" and wonder if there is anything people can do if "it" is going to hit the fan. .Maybe we're all in lkne for a haircut.

Farmers are wealth creaters and foreign currency earners adding "new" money to the economy. How the hell do resource poor countries manage their economies with trade deficits, poorer standard of
livings? If it wasn't for what we do all the goods needed to produce a crop are worthless, too bad we aren't valued more..