The commodities market that many farmers sell into is a break even market. We don’t set prices, we take what the buyers offer.
This will always lead to break even.
Some years a scare of shortage will drive the market up into profitable levels, but an equal number of years will be surplus and drive prices below cost of production.
Then, tax laws squeeze a farmer into only gaining assets, not gaining cash, even on the years that are profitable. On money you make to the good, you can pay 33-50% to the govt, or you can buy a piece of land or a tractor. Well, what would you do? You buy something, but yhat means you remain cash poor.
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Today's Featured Article - Madison's County - by Anthony West. Philip Madison has been a good friend of mine for quite some time. He has patiently suffered my incessant chit chat on the subject of tractors for longer than I care to remember, and on many occasions he has put himself out, dropped what ever it was he was doing, to come and lend a hand cranking handles, or loading a find onto a trailer. Although he himself has never actually owned or restored a tractor, he was always enthusiastic and always around helping with other peoples projects.
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