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SW Saskatchewan | The prisoner's dilemma.
Rudimentary second year economics.
Follow Plowboy's advice and barring divine intervention, there will be a lot of lemmings going over the cliff.
But the equation is not the "either-or" that he so loves to paint decisions. IF producers were to see that if THEIR NEIGHBOUR were to behave as Plowboy suggests, then a corn price of $2.00 is very likely.
At $2.00/ bushel, how much high price Saskatchewan potash are you going to apply? Lots of marginal micro decisions are going to push yields lower, and they all make good economic sense if savings are greater than output (revenue) lost.
And output (revenue) lost is lot less if you contemplate $2.00 corn rather than $4.00!
And its time to bring back that that hoary old catch phrase from a few yrs ago "think outside the box."
If you are boxed into a corn-soy world you don't have a lot of ways to turn, but look- a number of the posters on here are thinking again of cotton.
And I was to an auction yesterday about half way between Ed Boysun and me, talked to a few visitors from the Mt Hiline.
And they are thinking of lentils, chickpeas and beans in wheat country. But it is a hard decision-if they plant durum which right now is cheaper than corn for feed, the LDP guarantees them a small income-but should they go for the govt handout or try for what may be a larger return from the market?
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