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Tractor Talk Discussion Forum

Re: CORN PRICES AND FEED PRICES

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JD Seller

07-29-2013 22:56:48
208.126.196.144



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Did you sell any of your grain below market to your livestock raising neighbors?????

I have had many of my GRAIN only neighbors try to rent my hay/pasture ground right out from under me in years past.

Never had any of them offer to take under market for their grain either.

So it is not about caring about YOUR neighbor. It is about a grain cycle that has created some outrageous profits for the grain farmers and just about bankrupted many livestock farmers.

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Paul

07-30-2013 06:32:55
66.60.223.232



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 Re: CORN PRICES AND FEED PRICES in reply to JD Seller, 07-29-2013 22:56:48  
Yes I did.

Two whole wagons of ear corn to my neighbor with 5 head, corn was $7.22 when I delivered the ear corn to him last fall, I plan to put this weeks price on it when I get around to giving him the bill. Perhaps we will meet in the middle, but that still is a discount. Think cash corn is 5.70 or so, I believe $1.52 off is a discount?

Also 1100 bu of ear corn to a dairy down the road, he got hail bad last summer and needed ear corn. I threw in my labor free, and discounted the corn 11 cents a bu - it is common to add 10 cents like the coop does, so my discount might be closer to 21 cents a bu, but either way, a discount.

My close dairy neighbor we need to settle up some time, I never got around to presenting him a bill, but we have some oats, silage corn, and straw bales he owes me for, the price will be rounded down and some of that is 3 years old, no interest because I didnt present a bill yet. I consider that a discount? Also sold 2000 bu shell corn from my crib to him, was premium corn better test weight and quality than #2, we settled up on that at cash price, no 10 cent premium, no bonus for 61 lb test weights tho clearly he got Better milk from it than from coop corn. I've kinda hated to send the bill, dairy is so tough these past 5 years....

A hailed out sheep guy asked me for oats last year also, he offered the 10 cent premium before I could say much, so he got the load of oats for the price he offered.

I've often said on this forum and perhaps more on NAT, these high grain prices are once in a generation deal, and not good for livestock folk. We would do better with somewhat lower grain prices instead of the roller coaster highs of the past couple years. I've thought that for some time. Said so as well.


Now, I also remember the 1980s and 1990s, corn was under $2 a bushel cash long term, and recall livestock guys openly laughing, that they can buy corn cheaper than they could raise it, why bother planting crops when you can buy it from people losing money on crops?

What goes around comes around.....

But that is negative thinking, and not the direction I want to go.

I raise a little beef and more grain, we need the ag economy to work, not be a roller coaster. A little steadier, tad lower grain prices will be a good thing for all, in my opinion. Not that I was unhappy about getting $7 a bu for a little of my corn, but I want a good long term ag economy, not the crazy spikes and valleys.

We need incentive for grain farmers to produce grain, and we need buyers for it, between exports and local livestock and ethanol/ddg users.

Stable moderate prices help us all in the long run.

Paul

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