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Panhandle of Ne. | year than last. I like your thoughts that prices will rebound, but economics tells us different if we continue to overproduce.
As far as selling when prices were profitable, that price is different for each farmer. As for us, we did contract some, but not nearly enough. A person can get caught up in the hype that some analysts tell us that we will never be able to produce enough and that prices will go higher. That last years crop was such poor quality that end users are having to use an extra 25% to get the end result they want. When the reality is that none of this matters. We depend on the USDA to give us a fair and unbiased report and to take all things into consideration when making that report. IMHO, some things are left out when they make these reports.
I understand what you are talking about on not wanting to let land go, but, I would guess most of it is cash leased and the landlord doesn't care if you plant or not as long as they get their lease check.
One of the reasons I bring this up is that we plant another crop that the acres are regulated on. It is not a perfect system, but it works 90% of the time. We see a steady to a slightly rising price year after year and that is because we are not allowed to overproduce.
It just doens't make sense to me to continue to overproduce and then complain later about the low price of our commodities. | |
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College economics and the grain markets.
