Whoa cuban, hit the brakes. Layoffs in the Ag service industry do not happen that severely. They will do what they can to maintain profits, which may mean less profit for sure, BUT marginally paying less for grain (mystery basis) and charging a little more for the high volume inputs keeps everything going forward.
Simmer down! Its just farming, we are not drilling for oil, selling new 90 inch TVs or new cars. Once you realize you are just another primary producer of a high volume commodity sold on A commodity exchange you will find that you should pay for as much (weather) risk management that you possibly can afford. If you qualify for a payment say thank you. If you dont qualify, be thankful.
You can now complicate this with as many acres, animals, employees, machines, semis, input suppliers, grain buyers as you see fit to manage.
I agree that farmers definitely spend and revolve money. If/when there would be a government aid payout, most often it gets recapitalized into higher land prices, higher rents, higher machinery prices and higher new diesel supermaxhorn trucks.
This, in turn, creates a contempt for farmers by "real people"' who work and pay taxes and buy food, gas and TVs. So, your genuine living breathing customer doesnt like you because of a government cash injection pulled right from the taxes they are forced to pay.
I buy the risk management I can, if it gets real bad, l will have to make an attempt to make a living doing something else or live in a dumpster in Vancouver. Some days the dumpster is appealing. Most days...not so appealing.
Simmer down! Its just farming, we are not drilling for oil, selling new 90 inch TVs or new cars. Once you realize you are just another primary producer of a high volume commodity sold on A commodity exchange you will find that you should pay for as much (weather) risk management that you possibly can afford. If you qualify for a payment say thank you. If you dont qualify, be thankful.
You can now complicate this with as many acres, animals, employees, machines, semis, input suppliers, grain buyers as you see fit to manage.
I agree that farmers definitely spend and revolve money. If/when there would be a government aid payout, most often it gets recapitalized into higher land prices, higher rents, higher machinery prices and higher new diesel supermaxhorn trucks.
This, in turn, creates a contempt for farmers by "real people"' who work and pay taxes and buy food, gas and TVs. So, your genuine living breathing customer doesnt like you because of a government cash injection pulled right from the taxes they are forced to pay.
I buy the risk management I can, if it gets real bad, l will have to make an attempt to make a living doing something else or live in a dumpster in Vancouver. Some days the dumpster is appealing. Most days...not so appealing.
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