More chatter on Stamp Farms etc.

[gustgd]

BINGO WD-9
Just like farm profitability is tied to land rents so is
the price of inputs.

Every-one of us started in a commodity business.
We knew it when we started. If a farm gets larger
in most ashes I would say its because they stick
with what they know. The vast majority of acres in
Canada are still farmed by family farms.

Yet if we as an industry think that western Canada
is so special that successful models from around
the world can't be adopted here we are
delusional.

While short term plateaus may have been
reached, I hope land prices stay strong. That
would mean there's still profit in primary Ag.
Without profit there will be no young farmers
coming back to the country. With optimism it's the
smart kids that come back to the farm. With profit
it's the bankers and guys with industry experience
that come back.

[SASKFARMER3]

Gust What happened to land values in the Drought years. How many so called experts were wiped out.
In our area the frosts of 2002 and 2004 took out a lot of experts.
Slow and steady wins the race every time.
BS is BS!

[SASKFARMER3]

READ HISTORY!
Farming is no different.
CAnola prices for seed like WD said would drop if one spring all us guys said ps on you guys and were growing oats flax peas wheat durum etc.
THey would bend over and give you the seed!

[furrowtickler]

When the most expensive seed- Invigour stops
selling out before Dec then all canola seed should
start to soften. This may happen this year for the
first time in over a decade. Farmers continued to
pay Bayer a thief's ransom 8 months ahead of
when they needed it . Charge what the market will
bear. The rest of the seed companies simply
followed suit.

[SASKFARMER3]

Furrow I agree Bayer is not as they once were. Once they get hit in the wallets a new scheeme for priceing will come.
Price of the priciple ingrediant in Liberty is scarce so have to have a price increase. BUt we will drop the seed cost.

[gustgd]

They might give you he seed but only after you
sign a production contract.

Everyone has to work symbiotically to make
money. If they strangle the golden goose
(farmers) they don't have a supply.
If they don't make $$ we either don't grow a crop
or can't get it to market.

Sure land prices went down in drought years, and
farmers fled the industry! Big and small

Is that what you want? I'm not going to argue
particular situations, more of a view from my seat.
In times of profitability farms will grow.

If you were influencing policy what would you do
different? No ones forcing you to grow $10 lb
canola. I understand bean seed is more per acre.

[farmaholic]

Do you think this scenario would ever evolve? If some crusher or special crop processor wants to contract some production, they should supply the "special seed" for their proprietary product. I am thinking particularily of canola seed. With the margin on seed sales that are being made it wouldn't cost "them" $12.00/lb. retail to supply the seed and save us a pile of money. But as long as they have us carrying all the risk why would they? It was Saskfarmer's comment about bending over to give us the seed that spurred this thought.

[farmaholic]

Gust: Re: "strangling the goose that lays the golden egg". I've been thinking that for years, but I am getting tired of having their grip around my neck and tightening it at every chance they get(what ever the market will bear). Ahh, but times are pretty darn good right now!!!

[Burbert]

This is Angribusiness and the way of the
future. Nothing stays the same, change
is good, embrace it and you to will win
an award fer being the world's greatest
framer. The family frame is dead as a
doo doo bird, corporate bored room
framing is the future. Being in and
being part of the market is the future.
Our way or the highway. You big/fat
boys and girls created this bullshit!
Now enjoy it, roll in the crap and love
it!!!! Mom and Pop never ever new what
they was doin, feedin the kids don't cut
it anymore. GREED is the new norm and
driving force, yup yu two kin have it
all the entire world is yer framing
playground.

[wd9]

Bayer has done an amazing job at telling
you to early buy super expensive seed
that is just as good as many other
varieties. They are genius at marketing.

The recent ads, brilliant. You feel good
by buying bayer. Your wife and farm
partner is respected by bayer. On and
on. Brilliant. Keep writing cheques
earlier and earlier for more and more
because like a lemming, everyone else
is.

[furrowtickler]

Saddly right on wd9, unless that somehow stops the price of canola seed will continue to climb ever higher. No one to blame but the farmer himself..

[hobbyfrmr]

Wd9,

Agreed. A brilliant example of good marketing to
the target customer. The message is well
planned, the theory is believable enough to get
the customers to act. Then seed companies have
the cash and all winter to arrange how much seed
will be necessary. All nicely controlled. Minimal
volatility or risk on Bayer supply side. Nice and
smooth. I really hate to say it, but that.......is good
business.

[grrrr]

Getting back to Stamp Farms: I just did some quick figuring. I went back 10 years and took my average net farm income. If I were to project that to a 40,000 acre farm, Stamp Farms should be making an average of $3,452,400. per year. My farm is nowhere near that size and since we all know that bigger is always more efficient (HA,HA,HA) Stamp should have been making even more. I think this shows that economies of scale end and can even go backwards if a farm gets too big.

[furrowtickler]

Bingo grrr. I have seen it first hand right beside us, and am witnessing others as time goes on. A few know their limits but most do not - remember that disease "supermanitis" ? Very few make er out alive...

[sumdumguy]

Grrr, Smaller farmers micromanage and have
their own skin in the game. Super farms rely on
others and assume that they will treat the farm
like their own, except ... There's the rub.

I dont need to remind any of you that
management is the key.