So what's really out their, I for one have used up any decent price locked in for 2015 production and now will have to deal with the current prices being offered. I have a number that is needed for cash for commitments till xmas of 2015. But 2016 is the year in question.
Sept and October Canola is basically $9.12 today. Wheat a #2 is $6.21 for the same period. Oats has no action and barley well malt is like a secret mission who knows. That's almost back to 25 year old prices with 2015 costs.
So a 50 canola will pay you $456 a acre a 40 is $364 a 30 is $273 and a disaster is $182. But if you get the disaster by a frost or drought the price should move higher due to a shortage but then soy in usa and brazil could yield higher again and you in the shitter.
Wheat is similar a 50 gives $310.00 a 40 gives 248 a 30 gives 186 and a 20 is $122.
Businesses are wondering why the farmers aren't out buying new trucks and cars and tractors and drills. Dah real easy to figure it out. With prices like they are a year out and today. The good times are definitely done.
Now yes if I was in SW or W Sask I would drop My canola acres in Half and increase durum plus throw in a few thousand lentils,and do a contract for next fall off todays prices.
But the mud zone has other issues. Fusarium has taken durum off our farm as a favorite crop to grow. Way to much disease and all the spray in the world cant get us a decent grade.
Now they want us to prepay fert for 2015 crop who the hell even knows what acres will be able to seed in 2015.
Rent has peaked and so has land values. Ah farming what a wonderful way to spend money.
Any Ideas, Yes maybe sit back and do nothing is a idea! Plan for a 40 bushel crop if better your happy if less by 10 not bad and quit with the go for broke 60 across the board.
Sept and October Canola is basically $9.12 today. Wheat a #2 is $6.21 for the same period. Oats has no action and barley well malt is like a secret mission who knows. That's almost back to 25 year old prices with 2015 costs.
So a 50 canola will pay you $456 a acre a 40 is $364 a 30 is $273 and a disaster is $182. But if you get the disaster by a frost or drought the price should move higher due to a shortage but then soy in usa and brazil could yield higher again and you in the shitter.
Wheat is similar a 50 gives $310.00 a 40 gives 248 a 30 gives 186 and a 20 is $122.
Businesses are wondering why the farmers aren't out buying new trucks and cars and tractors and drills. Dah real easy to figure it out. With prices like they are a year out and today. The good times are definitely done.
Now yes if I was in SW or W Sask I would drop My canola acres in Half and increase durum plus throw in a few thousand lentils,and do a contract for next fall off todays prices.
But the mud zone has other issues. Fusarium has taken durum off our farm as a favorite crop to grow. Way to much disease and all the spray in the world cant get us a decent grade.
Now they want us to prepay fert for 2015 crop who the hell even knows what acres will be able to seed in 2015.
Rent has peaked and so has land values. Ah farming what a wonderful way to spend money.
Any Ideas, Yes maybe sit back and do nothing is a idea! Plan for a 40 bushel crop if better your happy if less by 10 not bad and quit with the go for broke 60 across the board.
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