Goo ahead and count your blessings...But don't B.S. everyone and yourself about an overall strong fa

[bucket]

Kato

So are the cattle guys going to do something creative and show how important they are? Or on they going to be shit on for high steak costs at the grocery store as everyone in their dog starts to rebuild fence lines they tore out a decade ago?

I get your point but the public doesn't, they want cheap food and the hell with the guy producing it.

There will be programs to get people into cattle. Instead they should have had a program to keep good people in cattle.

[pgluca]

Kato you have it absolutely correct if you are willing to be self reliant and accept a lower standard of living AND not spend money you don't have....you WILL make it to the next cycle of profitability. Nothing gets produced below cost, or without a profit margin for long. Times like this are entirely predictable and should be considered in your business plan. That is not to say I have no sympathy for people who have had extended weather or other issues.

[farmaholic]

But why should you produce below the cost of production as the rest of the Industry forges ahead. Basically being price takers puts us at a disadvantage. Your options are yes and no to sell. Don't give me the, "well stop producing" thing. People have commitments and want to live too. For heaven's sake, it is food and as I said in a different thread a while back, put it in a pot and cook it, WITHOUT any previous processing required. I'm not doing this as a "public service"......

[blackpowder]

Cash flowing their income tax. Thanks for the Sunday morning chuckle. I've heard that one before too.
I also know what 10 or 15000 hrs look like on a piece. There will be a hell of a lot less 'farmers' in this country when they need to start doing that.

[bucket]

As much as I hate seeing guys under utilizing their equipment, I need guys buying every year so good used equipment finds its way to my farm.

Drag this out 4 years and there won't be good equipment. Stuff has been getting wrecked for the past 5 because of the wetness.

Part of the reason dealers don't want it on their lots. Good for RBA.

[Klause]

The nice thing about older equipment is when you get to 9999.9 hours, in 1/10 you have a brand new tractor again






I kinda get a chuckle... In the patch we run rigs built in the 70s. They make hole as fast or faster than the new fancy ones with good guys on them.

My 1979 mf 4840 we picked up for 12K turned to 400 hp and a 1500 buck new market pump pulls a 57 ft air drill that we bought on auction time for 1600 bucks with 2 grand worth of openers on it.


Is it flashy... no... does it seed and grow a crop.... yes.

[wmoebis]

I wonder what has wrecked more equipment.
Wet ground?
Hrs of use?
Auto steer and text msg?

[blackpowder]

Besides, this high tech equipment would break you to fix anyway. Than God for the old Steiger and Versatile.




Now we start wanting "programs" again. That didn't take long. Back room planners in government long ago saw the number of viable farm units constantly shrinking to match economy of scale etc. we produce a raw commodity. A commodity that in the 20th century some govts starved many millions rather than secure more.
Sure I'll take program money too. But what makes you think you can design one anyway?

[Klause]

Pay every farmer 50 bucks an acre and see what rent and equipment does next year

[bucket]

I can. A premium based system similar to hail insurance.

On a per quarter basis, none of this whole farm crap.

Use historic data on a per quarter basis to develop a reasonable level of coverage.

Example. One quarter produces 50 bpa of canola peas wheat on average. That quarter should produce gross revenue of 350 an acre. You want to protect 80 percent of 350 so 280. You put wheat in but the market average price tanks to 4 bucks a bushel. You are short 80 buck an acre. Claim made and paid.

On another quarter canola goes 55 at 9 bucks but you are over both production and price no claim. Your average moves up when you want to change coverage.

Still thinking thru details but this whole farm average can't work anymore.