Crop prices?
Jun. 11th, 2008 11:18 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
spirithorse21Today in the headlines: Rain's toll on crops heavy
http://www.indystar.com/apps/pbcs.dll/article?AID=/20080611/BUSINESS/806110391
Indiana has been hit by devastating storms this past week, as has most of the midwest since about Mid April. Farmers further west of here haven't been able to get their fields planted or have suffered great losses from the rains. Farmers here in Indiana had their crops in, but now thousands of acres of land are underwater and probably lost for the season.
This in contrast with sky rocketing crop prices--due in part to the weather, and in part to eco fuels. Farmers over the past few seasons have been clamoring for more land to plant as they want to reap the benefits of high yields and high prices. Of course, the prices are soaring even higher now that so many fields have been devastated. The few who manage to pull this growing season off in even an average way will be seeing a bumper year in profits.
It just strikes me as an interesting paradox. Just last night I was reading my June edition of Progressive Farmer, which features an article about farmers removing their lands from the Conservation Reserve Program (CRP) and putting those acres to crop. Why? It would be stupid not to, from an economic standpoint. The prices of crops versus the pay out from the CRP is too great! For many years, it was smart to keep land in the CRP--they paid well, often much better than the open market would for crops. But now, as demand raises the price of corn, soybeans, wheat, and other crops, farmer are making the only smart economic choice they have--plant those fields.
Yet here we are. Land prices are astronomical, crop prices are the best they've ever been, and most of the land in the midwest is underwater! What a paradox. What a very sad paradox. My heart goes out to all the farmer that will be hurting this year due to the weather. On a brief tour of our land on Sunday, it appears that we will be fine. Our land is on high ground with exceptionally good tile under it. Everything is draining well and the crops look great. Our one disaster is the hay field. It is our first year growing our own hay. While the field looks great, we have yet to get in for our first cutting because the water content is so high and because of the exceptionally wet weather.
http://www.indystar.com/apps/pbcs.dll/article?AID=/20080611/BUSINESS/806110391
Indiana has been hit by devastating storms this past week, as has most of the midwest since about Mid April. Farmers further west of here haven't been able to get their fields planted or have suffered great losses from the rains. Farmers here in Indiana had their crops in, but now thousands of acres of land are underwater and probably lost for the season.
This in contrast with sky rocketing crop prices--due in part to the weather, and in part to eco fuels. Farmers over the past few seasons have been clamoring for more land to plant as they want to reap the benefits of high yields and high prices. Of course, the prices are soaring even higher now that so many fields have been devastated. The few who manage to pull this growing season off in even an average way will be seeing a bumper year in profits.
It just strikes me as an interesting paradox. Just last night I was reading my June edition of Progressive Farmer, which features an article about farmers removing their lands from the Conservation Reserve Program (CRP) and putting those acres to crop. Why? It would be stupid not to, from an economic standpoint. The prices of crops versus the pay out from the CRP is too great! For many years, it was smart to keep land in the CRP--they paid well, often much better than the open market would for crops. But now, as demand raises the price of corn, soybeans, wheat, and other crops, farmer are making the only smart economic choice they have--plant those fields.
Yet here we are. Land prices are astronomical, crop prices are the best they've ever been, and most of the land in the midwest is underwater! What a paradox. What a very sad paradox. My heart goes out to all the farmer that will be hurting this year due to the weather. On a brief tour of our land on Sunday, it appears that we will be fine. Our land is on high ground with exceptionally good tile under it. Everything is draining well and the crops look great. Our one disaster is the hay field. It is our first year growing our own hay. While the field looks great, we have yet to get in for our first cutting because the water content is so high and because of the exceptionally wet weather.
