Posted by skip33652 on March 07, 2016 at 07:21:04 from (68.69.66.29):
In Reply to: Trying times ahead!!! posted by JD Seller on March 06, 2016 at 20:11:22:
The last time we went through this mess we owed a lot and were trying to be BTO( for the Time) this time no debt not so big not so worried!
In the past 6 or 7 years I have heard phrases again like NEW PLATEAU of prices. IT will never get that low again. We will not produce it( grain cattle ETC ) at less than cost.Land will never get cheap again .it wont happen again etc.
Well three things are absolute #1 it can always get cheaper #2 it will only go back up ( once its cheap) after significant production problems somewhere #3 land cost will determine profitability. If your land is paid for you wont have problems making the payment or taxes vs if you have big payment to make.This includes feedlots , if paid for vs not .This has been a major problem in ag for quite awhile. Land prices or lease go up a crazy amount when commodities go up but fail to adjust on the back side of the curve.I blame things such as insurance and farm payments as taking the free out of free enterprise. Insurance and gov hand outs have allowed farms to get too big too fail and not allowed for our young people to get into ag.
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