downturn of 2015

[farmaholic]

To me it is like vehicle or machinery prices. MSRP won't change but they will "program" the shit out of them to move them. Loyalty bonuses, cash back, anything to maintain the full retail price and play the game after. I realize this doesn't mirror pump pricing but they seldom want to give up any gains and revert back to a cheaper price. They do to some extent but the drop, I doubt, is ever reflective of what the drop of the base commodity used to produce the final product was and the drop is slow to come. But when the costs increase, lookout, it never takes long for that to be reflected in the final price. Ever get tired of being a "consumer"?

[phoenix64]

Oilfield wages are simply a function of supply/demand principles. When drilling activity is robust the only way to attract potential employees from their guaranteed salaried positions in other industries is to offer up extreme amounts of cash. For all that cash, you give up any sense of job security and your project could be shut down at any time. I was in this boom/bust scenario for 30 years, not all roses.

[fjlip]

Prices mostly stay "because they can". Once lowered consumers get "SPOILED", heaven forbid we might expect lower prices to remain. Everything farmers buy HAS to increase every year. A decrease is not in the market's comprehension. But our commodity prices are like a yo yo, whipsaw constantly, every day, every minute of trading hours, and that is the law for us, the same can never happen for those we buy from.

[checking]

Better rethink your question.

What is right with the price of diesel?

Slow pump jacks indicate good wells.

[helmsdale]

Why is it so hard for some of you to feel empathy for those who could potentially lose their jobs? Most of the young farmers in this and alot of other areas check oil/gas wells, drive truck, reclaim leases, etc... in order to put food on the table while the farm side of their life barely pays the inputs and the rent. That aside, how was saskatchewan doing economically before the oil boom? What would be left of many of our small towns in western canada without oil and gas? Secondly I challenge anyone saying the wages are too high to feel free to volunteer themselves for less than going rate for the same job that they feel is "over payed". Seems rich coming from farmers who sleep nearly every night with their wives, have the ability to see their kids off on the bus every morning, and work hours of their choosing. We think that everyone else in the world should walk a mile in the shoes of a farmer to see how hard we have it. Don't be afraid to do the same for everyone else!

[mbdog]

helms...careful not to let the ag groupies/ideologs on AV get under your skin. Don't like that you painted "farmers" with a brush. I think majority empathize with the job.
Back to Errol's point...AVer's...here's hoping the ripple effect of current downturn in oil doesn't catch you with your pants down.

[blackpowder]

Well, I've done a little of both. I suspect the loudest on here might not have.
You can find overspending and waste everywhere.
Still wonder if we pay more than at the pump than down south because of taxes.

[sumdumguy]

Helmsdale, those that have never punched a clock and never were the brunt of bad bosses talk it up, but I agree. I've been on both sides of the fence. But, you've got to admit, in the last few years you've seen more young guys spending like drunken sailors. Think they banked any of their living expense, tax-free stipends? Every small town in Eastern Saskatchewan and probably everywhere else can show you the big new homes, the extra-long 3/4 tons, the new campers. The thing about all commodities is that the price cycles. Have you seen the spot price of gold today? Nerdy as it sounds, you have to sock it away when you can. Sorry BreadWinner, that's my experience.

[Horse]

Klause Ihave been there and for $1.25/ hr and none of this safety shit you have now. Ever been down a rat hole 25ft deep with a stick of dynamite in your pocket and no liner on the hole . Would it be any warmer or earler in the day if you was getting $50/hr . A dirty job is a dirty job no matter what the pay is. We all have to live and for some to make twice as much as the rest is hard to justify . How about the guy with his arm up to armpit in a cows ass at 3am while some teen is gettig $35 sitting in a warm pickup driving from well to well with some one else supplying truck and fuel . PS did anyone ever get extra for middle of the night calves, or more for tough grain . I defy anyone in the oil patch to justify thier wages compared to other jobs. And we all pay as the royalties are paid after expences.

[foragefarmer]

Hemsdale

Very valid points.

Speaking for myself I had a job while farming in order to make ends meet in the beginning. But keep one thing in mind that if you can not see the future of your farm being able to survive on it's own. Do not spend good money after bad.

Parsley

Drove down highway eight in October south of Redvers, didn't see any tax dollars being spent on that highway.Even if it a Provincial highway. Many of the secondary roads were nothing to brag about either. By the way thanks for singling me out from all the other posters talking about the cons of big oil. I feel very honor that my post caught your attention?

[Hopperbin]

Farmers that have to make a living off their farm and not oil are happy with the dollar. I am happy. Grains is a little removed from the oil and metals thus time In My opinion. Making us beneficiaries of the lower dollar.

[helmsdale]

Some of the price premium is taxes, but have also heard the argument that fuel prices now have comparatively more to do with the price and availability of things such as biodiesel and ethanol, (needed to meet gov't blending mandates) or hydrogen (needed to meet gov't sulphur content regulations) than with the base components. We have been close to the US at times over the last few years, but if you take out the gst, the road tax, and convert to $US/g we aren't even in the running. http://americamovesbytruck.com/fuelpriceindex.php?view=all