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Red River Valley | Jreiser will you get all the farmers in the world to do this because the excess production out of the rest of the world would sky rocket look what happened in world wide wheat production from the prices in 2008. second would you also get all the farmers to agree that when prices got high again to not raise land cost because that's what will happen given profits farmers will raise the cost of land until they make it unprofitable to farm.
Then what about the farmer who in 2008 with the record prices sold all of his production for 2008- 2011 then in june of 2009 sold everything for 2012 and used a sell and roll marketing plan and covered himself for 2013 should he not plant a crop and not honor the contracts he has sighned.
My bet is that my dentist, lawyer, car dealer, and others would have loved the chance to market their services for up to three years in the middle of a bubble like we had in 2008.
belive it or not but in the grain production industry there are some accept the price that is offered and others that take the price that is offered .
when your landlord tells you that he want's 25 dollars mor per acre in cash rent do you pay it or do you let the land go - for the most part farmers pay whatever it takes to keep land until they go broke. I talked to a farmer about a week ago who was b!tc#ing about the rent one of his land lord charged him it is about $25.00 above the market I stated that he should have let the land go his answer was that his family had farmed the ground for 56 yrs. and if he didn't pay the rent he would have lost the ground. I told him that as long as the landlord knew that his rent would always be to high.
I always have to take a double look when people tell me to Idle land for a year and we will get what we want. we had $8.00 corn $15.00 beans and $24.00 wheat and in two yrs. everybody is talking about going broke.
Farming is an Industry that can't handle to many more high priced years like 2008 are we will manage to have all of us in the poor house. LOL
The value of land will reset to a price that makes it profitable to farm again, it's getting there that makes it ugly.
Edited by Tara Farms 4/5/2010 14:32
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here is a thought for kagen's post below .
