Soybeans Rotting

[farmaholic]

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Seriously, I have 4 large volume, high input, high eiffciency farm neighbors that are extremely productive. If they are not making money, nobody is making money. They rent a lot of land but they also have bought a lot of land. Even if they ceased operations today, they would have multi millions in net worth with just farmland. This is not counting US winter houses, 5% of the houses in local towns and villages for the employees, summer lake cabins, second farms in different RMs, cows leased out and probably a respectable lump of cash.

The biggest downfall if these guys stopped their farming is local unemployment. There would be about 100 guys trying to make house, groceries, quad,boat,snowmobile, and booze payments from a pogey cheque.

Maybe some of those 100 guys could farm all the pieces of those 4 pies. Proobably not though because the buy-in is prohibitive these days. So the guys with the critical mass continue to eat up what ever they can because they are ravenous gluttons with insatiable appetites.

But to each their own....

[hobbyfrmr]

Maybe some of those 100 guys could farm all the pieces of those 4 pies. Proobably not though because the buy-in is prohibitive these days. So the guys with the critical mass continue to eat up what ever they can because they are ravenous gluttons with insatiable appetites.

But to each their own....

Some (not all) of the guys can barely manage their lives/finances. One advantage as an employee is the big farm can purchase the vehicle, atv, recreation stuff and they just have to work it off. No need to personally qualify for credit etc.
I do not consider my neighbors ravenous gluttons, they are simply more ambitious than the average farm.
You have to see some of the good side of all this. They keep land prices and rents high which is good for anyone looking for an exit. They accept the risks and reap the rewards. I think they are not as broke as others portray. If they are, it will correct and the critics will be able to say they were right.

[farmaholic]

Yes Hobby, there are both pros and cons to every situation.

I suppose it wasn't fair for me to describe your neighbors as ravenous gluttons with insatiable appetites when I don't even know them. But I bet my description would describe how some other people in your neighborhood feel. Once again, I'm assuming.

ps, I write for effect. My description sounds extreme but it makes the point

[bucket]

They are making it up on volume....and on diminishing returns....its technically not sustainable ....


We are getting less than a quarter for the price of grain as our forefathers did....while buying the industry's storage for them....

We are all basically margin farmers now.....I have seen guys buy large quantities of chemical to work the rebates...then say they will just bring it back after the rebate cheque arrives.....thats not farming....

[hobbyfrmr]

Yes Hobby, there are both pros and cons to every situation.

I suppose it wasn't fair for me to describe your neighbors as ravenous gluttons with insatiable appetites when I don't even know them. But I bet my description would describe how some other people in your neighborhood feel. Once again, I'm assuming.

ps, I write for effect. My description sounds extreme but it makes the point

I understand you write for effect. Local jealous non farmers relay these kinds of feelings and attitudes around me because I am the token “organic guy”. It is part of the “art of conversation”. They expect me to agree with them and bash the BTO’s. This makes excellent fodder creating a false “us vs. them” culture.
Thats not the way I lead life. Being at a distance from mainstream provides me with some insights and plenty of retail addictive/dependant patterns I disagree with. That said, truly what the neighbors are doing with their farmland is none of my business.
The original theme does not sound accurate. The soybeans are rotting in the fields because the farmers can’t afford to harvest them.
There is not much logic in that statement. Not enough money for fuel? How do you run short of money before you harvest the crop? Do they indirectly mean to say the price of soybeans is so low they are below cost of production so “at this time” mathematically they are not worth harvesting? The headline is rather obscure.