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| I think both things are true but in different sequences. Production will increase until there is no profit, then a cut back on inputs will eventually lower at least some input prices. Iron has gotten so insanely priced that it may well put companies out of business if low prices last long enough. How many acres production does it cost to buy a new piece of equipment if there no profit per acre?
Went to a hay auction yesterday. Some lower quality stuff didn't even cover the cutting and baling let alone the hauling and sale expense. Never would of believed it could happen in one year and it simply was a function of the smallest cow herd in 75 years and a good spring in terms of moisture. Seriously thinking of buying a years worth of hay and not putting up a bale this summer.
I know what the 70's - 80's play book looked like. Probably not many will be up at 3AM to run a trapline before taking care of cattle only to spend the evening putting up fur in a wood heated shed. | |
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Seems many on here want to dust off the 70"s - 80's playbook
