Good News Saskatchewan

[burnt]

Chuck...

I am not complaining or disputing your comments...just adding some facts.

In the 70s a 3 ton of wheat would buy a half ton...today it takes nearly 5 super B's of canola to buy a halfton .

Farmers are not keeping pace...google the price of wheat from mid 70s and index to today's dollars...we should be well into mid 20 bucks a bushel for wheat.

The only indexing going on is the BPA , which is not making it cheaper to farm. Therefore net to most farms is getting tighter even in the current environment of higher grain prices.

I am not sure that gauging farmer's income the way they do is an progressive way to help the industry.


In the 60s a cow herd of 50 cows and 1200 acres raised alot of family with far larger families on the farm.

Today it seems they have to have a minimum of 300 cows or 10000 acres.

While some call that progress , I look at it as a regression. Why , because it limits the number of new entrants into the industry because of the cost to entry.

a 300 cow calf operation c/w machinery and land would be well in excess of 2 million for anyone to start out.

10000 acres with minimum margins is a 15 million dollar investment ...Its not like you can go get an off farm and make the down payment ....

In 1978, I bought a new GMC Sierra 4x4 for $8500. I had a good turn on the 50 head of cattle I fed that winter and the profit - yes, the profit on those steers paid for the pickup and I paid the tax out of my pocket.

Toured across the West in it, dream of a lifetime for a youngster. Spent 3 weeks helping with harvest near Stirling and that paid for my trip.

Today it would take the entire cheque from about 20 - 25 fat steers to buy that truck.

And the "profit"? Well, you wouldn't be buying a new pickup for a loooong time with it.

[bucket]

In 1978, I bought a new GMC Sierra 4x4 for $8500. I had a good turn on the 50 head of cattle I fed that winter and the profit - yes, the profit on those steers paid for the pickup and I paid the tax out of my pocket.

Toured across the West in it, dream of a lifetime for a youngster. Spent 3 weeks helping with harvest near Stirling and that paid for my trip.

Today it would take the entire cheque from about 20 - 25 fat steers to buy that truck.

And the "profit"? Well, you wouldn't be buying a new pickup for a loooong time with it.

You would be lucky to be able to purchase a used 1978 GMC sierra with any profit from the steers today?????

[Guest]

Funny that chuck is so out of touch
Completely oblivious to what is happening ?

[GDR]

Chuck...

I am not complaining or disputing your comments...just adding some facts.

In the 70s a 3 ton of wheat would buy a half ton...today it takes nearly 5 super B's of canola to buy a halfton .

Farmers are not keeping pace...google the price of wheat from mid 70s and index to today's dollars...we should be well into mid 20 bucks a bushel for wheat.

The only indexing going on is the BPA , which is not making it cheaper to farm. Therefore net to most farms is getting tighter even in the current environment of higher grain prices.

I am not sure that gauging farmer's income the way they do is an progressive way to help the industry.


In the 60s a cow herd of 50 cows and 1200 acres raised alot of family with far larger families on the farm.

Today it seems they have to have a minimum of 300 cows or 10000 acres.

While some call that progress , I look at it as a regression. Why , because it limits the number of new entrants into the industry because of the cost to entry.

a 300 cow calf operation c/w machinery and land would be well in excess of 2 million for anyone to start out.

10000 acres with minimum margins is a 15 million dollar investment ...Its not like you can go get an off farm and make the down payment ....

Bucket I understand your frustration, but do think you only tell half the story here. Comparison to the past is unfair because so many variables have changed. 50 cows and 1200 acres in the 60s would have been a lot more work than 5 times that today. ( and by the way I'm currently not much bigger than that and make a better living than anything else I could do) Profitability on farms a lot of the time is determined by choices. There is a local farm with 7500 acres ( huge for our area) that bought every piece of equipment brand new on the farm this spring including 2 drills and 4 tracked Jd 4wd tractors. I'm guessing their profitability looks pretty poor this year....but what is reality? Currently there is great opportunity to do well in Ag so embrace it.

And I do agree barrier to entry is a problem but if wheat was $20/bu like you suggest that barrier would be much higher than it is now.

[furrowtickler]

High prices mean SFA until there is a crop to put in bin
To say farmers incomes will be higher is laughable at this point .
Just an excuse to justify support for higher carbon tax’s .

Like a lottery ticket , means nothing until those numbers match

[bucket]

Bucket I understand your frustration, but do think you only tell half the story here. Comparison to the past is unfair because so many variables have changed. 50 cows and 1200 acres in the 60s would have been a lot more work than 5 times that today. ( and by the way I'm currently not much bigger than that and make a better living than anything else I could do) Profitability on farms a lot of the time is determined by choices. There is a local farm with 7500 acres ( huge for our area) that bought every piece of equipment brand new on the farm this spring including 2 drills and 4 tracked Jd 4wd tractors. I'm guessing their profitability looks pretty poor this year....but what is reality? Currently there is great opportunity to do well in Ag so embrace it.

And I do agree barrier to entry is a problem but if wheat was $20/bu like you suggest that barrier would be much higher than it is now.

Its not a frustration...I think its a reality check that we are not keeping pace.....A paid for farm should provide the same level of living as a person working as middle income worker..

Things seem out of balance now...you cant go work off the farm and make land payments at the current land prices...many would be better off just keep their day job....that isn't good for renewal within the farming community . Even with paid for land the inputs are squeezing farms.

The problem is the people that supply us are doing better than farmers themselves...and while the answer may be go work for them instead ...eventually its the law of diminishing returns...and if farmers are not making money regularly the whole house of cards will fall...

You see the new equipment go to RBA halfway through the lease along with grandpa's paid for farmland?

[jazz]

And I do agree barrier to entry is a problem but if wheat was $20/bu like you suggest that barrier would be much higher than it is now.

Crop prices fell after the 70s because the federal reserve had to fight inflation after defaulting on the US debt and loss of the gold standard.

Same thing will happen again in the next yr if they have to do it again. Buying a bunch of expensive land and rolling over iron just because there was a spike in a commodity price for a few months is stupid planning and short sighted and shows some of our high rollers dont understand how broader economics even work.

I wont be holding any crop this yr. Locked all my loans down to 2.2%.

[Braveheart]

You would be lucky to be able to purchase a used 1978 GMC sierra with any profit from the steers today?????

I just wish I could find a not rusted 1978 GMC Sierra, that I could afford.

[blackpowder]

Nostalgic about mine.
4 spd, gear transfer case 4wd. 3/4 ton and not bad on gas for the day. HD grill guard and bumpers.
3 months winter wages bought it used in 83.