As has been said...overall farm prices are in the tank....other players just can't/won't do their part to signiicantly move grain and....... Mother Nature just isn't cooperating inproducing quality production.
And there is a lot of truth in stating that negative returns result from less dollars received from sales compared to what was spent for input costs ; let alone leaving a healthy profit or your labor and various other risks.
As proof of the above simple and obvious conclusions above, I refer everyone to the latest issue of the US based Farm Forum newspaper. The front page story headline is "Negative Margins leave farers struggling with decisions of the future"
Average cost (in US dollars of course) for corn seed, fertilizer,fuel,achinery, land rent and spraying was reported by an SDSU extension crops specialist as $634.00.
At an average yield of 150 bushels per acre and $2.70 per bushel equals $405.00 income
But corn price at the elevator may well be $1.90 at present time; so that is pretty optimistic at only an average loss of $239.00 per acre. Additionally; the paper reports that area elevators are full...even before corn and bean harvest has begun... and the rest of the paper is full of such stories as ethanol company complaints of tardy rail service, forced shutdowns because of back logs and no way to adequately move products
Except maybe unit trains of oil.
But leases for rail cars are $2000.00 per month.
Maybe farmers are too understanding of the utter failure of transportion and grain purchasing companies.
Since those ancillary agricultural sectors are not holding themselves accountable; and the governments of all stripes haven't noticed or reacted......
Will not the whole system just collapse and deteriorate at least in thhe short run.
And you know what the optimists see as the silver lining.
Grow sunflowers wall to wall. And over produce flax so it can be $4.00 per bushel... or durum at just slightly less value that that money loser spring wheat.
Maybe other expert people's advice should be taken with a grain of salt; and while CEO's can run profitable companies; they inadvertantly (read deliberately) are only doing what is best for their bottom lines.
And you dear farmer are left defenceless, unprotected and at the mercy of forced into buying inputs at prices outside your control...
Such is the end result of refusing to unite for your comon good..
And there is a lot of truth in stating that negative returns result from less dollars received from sales compared to what was spent for input costs ; let alone leaving a healthy profit or your labor and various other risks.
As proof of the above simple and obvious conclusions above, I refer everyone to the latest issue of the US based Farm Forum newspaper. The front page story headline is "Negative Margins leave farers struggling with decisions of the future"
Average cost (in US dollars of course) for corn seed, fertilizer,fuel,achinery, land rent and spraying was reported by an SDSU extension crops specialist as $634.00.
At an average yield of 150 bushels per acre and $2.70 per bushel equals $405.00 income
But corn price at the elevator may well be $1.90 at present time; so that is pretty optimistic at only an average loss of $239.00 per acre. Additionally; the paper reports that area elevators are full...even before corn and bean harvest has begun... and the rest of the paper is full of such stories as ethanol company complaints of tardy rail service, forced shutdowns because of back logs and no way to adequately move products
Except maybe unit trains of oil.
But leases for rail cars are $2000.00 per month.
Maybe farmers are too understanding of the utter failure of transportion and grain purchasing companies.
Since those ancillary agricultural sectors are not holding themselves accountable; and the governments of all stripes haven't noticed or reacted......
Will not the whole system just collapse and deteriorate at least in thhe short run.
And you know what the optimists see as the silver lining.
Grow sunflowers wall to wall. And over produce flax so it can be $4.00 per bushel... or durum at just slightly less value that that money loser spring wheat.
Maybe other expert people's advice should be taken with a grain of salt; and while CEO's can run profitable companies; they inadvertantly (read deliberately) are only doing what is best for their bottom lines.
And you dear farmer are left defenceless, unprotected and at the mercy of forced into buying inputs at prices outside your control...
Such is the end result of refusing to unite for your comon good..
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