This price correction should have been no surprise to fellows. Just back in Sept. 2010 we had $3.50 corn. A world wide shortage of feed protein is what drove the markets up. Ethanol is a small player in the price run up. So with higher prices everyone ramped up production and BID crazy on rental ground. So now the results are coming in. Anyone paying over about $250-300 an acre rent for good ground is going to lose money on that very same ground. There is a lot of $450-500 an acre ground rented around here. It will take time for the inputs to fall in price. Some of them may not fall in price depending on world wide demand.
Much of this rented ground will have to have a change of tenants for the rental price to fall. My boys and I have had over ten calls from land owners wanting to rent us their ground. The trouble is they want two year ago rental prices. Most of them just will not believe that they market rise is over. The gravy train is GONE!!!
So if the fellow has a record yield it will make up for some of the lower price per acre but I think he is dreaming. The corn is not that much better where he is. The soybeans maybe but not corn. He is blowing smoke up some reporter butt. The grain only farmers are going to take a severe hit in income. They have been spending like drunken sailors and it is coming home to roost.
I know of several that have already been told that the bank is only going to allow so much for rent. Anything over that and they will NOT get operating money. This is very similar to what happen in the 1970s. Prices took off and guys started spending money like those prices would never end. The very same issue is hitting them today. They are lucky that the interest rates are low and the Government is not playing politics with the grain.
The long and short of it is there will be guys go broke in the next 6-18 months. Not way around it. There will be auctions.
Upload one or more videos to your post. Photo filesizes should be less than 300K and Videos, less than 2MB. Formats allowed are gif, jpg, png, ogg, mp4, mov, and avi. Be sure to use filenames without spaces or special characters, and filetypes of 3 digits lower case.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
... [Read Article]
Latest Ad:
Sell 1958 Hi-Altitude Massey Fergerson tractor, original condition. three point hitch pto engine, Runs well, photos available upon request
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
