Friday, August 12, 2016

Farming vicissitudes...





"This year, we are set to blow the doors off of last year's yield."



One thing I have never taken for granted, is the blessings we have in this country of bountiful food. It was always been this way, and throughout the years we have figured out how to make it even better.

Like many of us, when I was a young boy we had a relative who farmed. When we would go out to visit, I thought living on a farm was about the coolest thing in the world. My parents would always council me that farming was incredibly hard work. And sometimes very risky. But at my age at that time, I did not care. It was still cool!

Many of us have noticed while driving around the countryside, the crops looks nothing less than amazing. And if it looks like we might be in for yet another record year, you are correct. Last year was a great year. This year, we are set to blow the doors off of last year's yield. For example, according to a USDA report submitted earlier this month, here are just some of the predictions:

  • Corn up 11% from last year, averaging slightly over 175 bushels per acre. Of all the corn planted in all the states, 76% is rated to be in good to excellent condition.
  • Soybeans are also having a banner year. Yield is expected to be 3% higher than last year (which was a very good year), and the average yield will be almost 50 bushels per acre.
  • Wheat and durum are also expected to be 11% higher than last year. And the list just keeps on going.
But there is a ying to the yang with all this good news. This has been close to a dead perfect growing year. Which means, most everyone has good looking fields. Then that old two faced bandit (supply and demand) comes into play. The market is flooded with high quality grains - and lots of them. So the prices are low. Last winter I could buy a 50# sack of field corn for less than $6. That is cheap! This year promises to be the same.

How can a farmer enjoy a bountiful harvest and good prices. This is going to sound bad, but it is the truth. Parts of the world and/of country which grows the same crop(s) need to have a drought or other bad growing conditions. Then the local farmers with good growing conditions will be able to sell at the best prices.

Vicissitudes. Or more commonly known as the changing of fortunes. I could not think of a better word to describe farming today. Thankfully, we grow enough to feed our people as well as good chunk of the world. We just need to ensure our farmers make enough to stay viable.


  

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