EC Nebraska | SoDak Farms - 2/21/2024 21:09
I’ve been in drought, so I questioned. I’ve been saying folks were undersold 23 and hardly any hedges for 24 from convos I’ve had. But to your point, I don’t think folks have the money we think they do….
Yeah, I was visiting with my banker a few weeks ago, and he was saying similar things. He really doesn't like the fact that the coops let farmers put their unsold harvest bushels on July basis contracts. He wished the bushels had been priced at harvest and the dollars put to use. Apparently there are a lot more of those bushels on the books than I realized.
Remind me how that works. Is the coop long the board for those bushels? That might be a few contracts that will be available to cover shorts.
I reminded him that a year ago he was telling me that a lot of his customers weren't renewing operating loans because they had enough cash and/or grain to operate on. He shrugged and said "they got it spent".
I don't know, there don't seem to be any shortages of bidders at land/rent auctions. A pivot-irrigated quarter sold last fall to a couple local investors. It's decent ground, but pretty rough. Lots of little up-down up-down draws running through it. Rumor mill says that a neighbor offered $400 cash rent for this year, and didn't get it.
*shrug*
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So Met With The Banker Again
