Farm Fustration

[Farmer Kitty]

Our local TV station did an interview with one farmer. While the interview is a bit thin the final paragraph hits home and most of the comments, so far anyway, are good.
Fustration
It would be nice if they would follow this up with a story telling how much farming impacts a community. Equipment and supplies bought, etc. and how many jobs and revenue that creates for the communities.

 

[jhm47]

Yes, things are bad for all the "base" commodities. Milk, corn, wheat, beef, everything is below the cost of production. This is a result of the extremely high prices of a year ago. Remember when corn was nearly $7 a bushel? Farmers increased their production, increased their fertilizer that they applied on their land. Thus, the fert price more than doubled, and now the price of corn is less than half.

 

[Farmer Kitty]

The farm broadcaster on the radio in the morning had an interesting fact on. The high price of corn was blamed on ethenol. But, ethenol production was actually down this last year so, how could it have driven the price up?

This supply and demand pricing can work and can backfire.

 

[wynedot55]

that dairymen just stated some sad but true facts.the last 10yrs that we ran the dairy we was going in the hole.but i didnt care that i was losing money.because it was a way of life that i loved more than anything.but due to factors that i wont talk about we soldout.an i wont think of it today because it brings back the feelings of anger rage an hatred.but yes id go back in today at the gate prices.

 

[Farmer Kitty]

DH took over the farm in Feb. 1988. They had sold out and then put the cows back on in the fall of 1987. They had stripped the place. No silo unloaders, no tiestalls in the back barn, no equipment other than what DH had bought to fix and sell. It was a drought year and milk prices were low.

We have bought equipment and cattle and paid off the extremely big debits that came with the farm. It is a matter of remembering that prices will fall and not to over extend yourself in good times. We had bought some land and prices were low. We were able to do the payments fine so when the prices went up we put more to the loan and paid it off. Others went out and took more loans out for equipment, etc. and are now going to be struggling to make ends meet.

It's a case of save every penny you can and plan your finances for the lean years. When the good years come take advantage by paying more on the loans you have or paying cash for things you need so when the lean years come again you can make it.

 

[wynedot55]

your stating facts that the coffee shop dairymen never knew or used.i learned along time ago when you borrow money you pay the loan as fast as possable.

 

[Farmer Kitty]

your stating facts that the coffee shop dairymen never knew or used.i learned along time ago when you borrow money you pay the loan as fast as possable.

But, many are in the borrow mode because the prices were good and they didn't worry about paying off the ones they had. OUCH!!!

 

[wynedot55]

an alot like to drive new 1 tons an pull big goosenecks an have fancy new equipment.

 

[kstaven]

My grandparents taught me well. If its broken, fix it. If it isn't broken don't replace replace it. People replace what they don't need to, and run up the debts putting on a show.