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Post by dirtfarmer on Dec 9, 2010 14:55:59 GMT -5
I'm not sure what it all means but there was an auction of some high dollar real estate yesterday. This was 600 acres with planted pine in a good location. Decent soil for this part of the country. Would have sold for over $10,000 per acre about three years ago but yesterday it sold for under $1,700.
On the other hand I called the mill today and the price of my custom mix animal feed has jumped 20% in only two weeks.
It ain't good news kids.
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Post by Michael Downing on Dec 9, 2010 21:25:38 GMT -5
I have seen predictions of 35% to 50% increase in prices again from this years end price to prices expected by June in rice, corn and wheat.
"It ain't good news kids." This may well be a huge understatement.
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Post by remyrw on Dec 9, 2010 22:45:16 GMT -5
kind of scary when lead is part of the precious metals category. Has anyone heard an explanation/excuse for the recent jump in gas prices? I'm not sure if it's widespread, but here in CT it's up about 20 cents over the past week, week and a half. That puts the cheap stuff at $3.20-$3.25 at most places around here.
Here's a nice thought for you, see if you can find a way out of the loop without someone in the gas industry caving. Higher fuel prices mean higher costs across the board for almost everything, including farming. So while the cost to produce crops is going up we're also having a push toward ethanol which increases the price of one of the most common feed crops. So not only is there more demand for it and it costs more to make, but the available land is increasingly being used for it, reducing the supply of other crops that grow in the same conditions. That increases the price of all those crops at the store. Despite the increase supply of ethanol producing crops the supply of the same crop for FEED is down and the cost is up, increasing the cost of meat animals, eggs and milk. So basically, the cost of EVERYTHING went up because the fuel price went up, and the short sighted attempts to reduce that just make the situation worse by adding another layer of price increases and shortages. I can see this driving more farmers out of business or into default on loans as well.
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Post by brocktownsend on Dec 9, 2010 23:01:39 GMT -5
I can see this driving more farmers out of business or into default on loans as well.
My grandfather, who supplied virtually all the milk to Richmond during WWI, had huge farms which his children and now grandchildren inherited and still farm; however I once asked my Cousin Barnes (Yep, he was named after a barn!) what it would take these days to start farming and he said the only possible way was if you were given the land, implements, etcetera free and clear, then you could scratch out a living, but that was about all.
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