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| It's interesting, if you do some breakevens from 1980 using NASS data, and do some breakevens today, well, maybe a year agot ;0), you'll find out that profitability per acre was a whole lot better in the early 80's. Guys were just carrying too much debt on land. Plowboy is right, we're more efficient producers, but we've pushed profitability way back to do it. Now, the standard thinking is that there isn't as much land debt as there was in the late 70's, which is true, but there are an awful lot of operations that are going to have almost as much operating debt per acre next year as they would have had land debt in the 80's, and you've got $.35 hogs again. Anything that drives down prices could be a disaster. Farm Futures Magazine, consistently one of the most bullish and one of my least favorite reads, was even starting to too tthat horn this month. | |
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Tell me are beans too high ?
