Can you clarify? As a producer (corn grower) aren’t you being paid a higher price for you commodity?
Most farmers have to sell when they harvest, they don’t have the storage to hold the grain and even if they did the bank is holding an note and is calling to collect. Prices are high now and from the outside it appears a farmer is making a killing, watch the prices drop end of July beginning of August when farmers start harvesting. They could find a buyer now and contract tomorrows corn at today’s higher prices but if they contract 2mil lbs, they better have 2mil lbs come August.
I read an article saying the packers are the ones who make out on the price increases, the middle man was benefiting the most. Wonder if that's the deal with corn, surely not. I hope the farmers are getting what they deserve. There are many more folks hunting now, the demand for corn has increased so I would think they would be paid well to grow/maintain corn crops.
Sent from my SM-G950U using Tapatalk
The corn that deer hunters buy is less than a drop in the bucket, in the grand scheme of things.
Most farmers have to sell when they harvest, they don’t have the storage to hold the grain and even if they did the bank is holding an note and is calling to collect. Prices are high now and from the outside it appears a farmer is making a killing, watch the prices drop end of July beginning of August when farmers start harvesting. They could find a buyer now and contract tomorrows corn at today’s higher prices but if they contract 2mil lbs, they better have 2mil lbs come August.
Most if not all is contracted already. Ultimately the higher the commodity price the easier it is for a farmer to turn a profit. Everyone has a break even and there isn’t a farmer I know with a break even anywhere near today’s prices. Farming is not easy, but it can be very profitable, lots of programs to help as well. Most I repeat most farmers that go broke own no land and manage their finances poorly. I have personal relationships with a ton of farmers that earn a dang good living. Personally I could not deal with the stress and the debt load that comes with farming!
Most if not all is contracted already. Ultimately the higher the commodity price the easier it is for a farmer to turn a profit. Everyone has a break even and there isn’t a farmer I know with a break even anywhere near today’s prices. Farming is not easy, but it can be very profitable, lots of programs to help as well. Most I repeat most farmers that go broke own no land and manage their finances poorly. I have personal relationships with a ton of farmers that earn a dang good living. Personally I could not deal with the stress and the debt load that comes with farming!
You asked a question and I tried to answer as simple as possible. But if the people you know are dry farming and contracting their corn in the spring, the years coming when they’re going to get bit.
Most if not all is contracted already. Ultimately the higher the commodity price the easier it is for a farmer to turn a profit. Everyone has a break even and there isn’t a farmer I know with a break even anywhere near today’s prices. Farming is not easy, but it can be very profitable, lots of programs to help as well. Most I repeat most farmers that go broke own no land and manage their finances poorly. I have personal relationships with a ton of farmers that earn a dang good living. Personally I could not deal with the stress and the debt load that comes with farming!
Maybe for the large commercial farmers. Did you factor in the exploding cost increases of planting seed, diesel, fertilizer, etc into your “making a killing” formula? As mentioned above, most farmers have to sell at harvest or shortly after, when the market is flooded. Very few store their grain to wait for better prices. Those that do have to pay for that storage.
Maybe for the large commercial farmers. Did you factor in the exploding cost increases of planting seed, diesel, fertilizer, etc into your “making a killing” formula? As mentioned above, most farmers have to sell at harvest or shortly after, when the market is flooded. Very few store their grain to wait for better prices. Those that do have to pay for that storage.
Did not mean to turn this into a bickering match, I am very familiar with the industry and have worked in it for my entire adult life (15 years). I am PRO agriculture, it feeds my family. You guys have great points, but not all grain is harvested at once, harvest works its way north. Seed price has not increased much over last 5 or so years and the Technology in the bag easily offsets the price increase. Diesel today is cheaper than it was in 2018 and pretty close in price to 2019. Fertilizer is high this year but it has always fluctuated greatly! Again, my only point was that a farmer benefits from the higher corn prices so I will gladly pay an extra couple of bucks a bag for deer corn!
Comment