The commodities market that many farmers sell into is a break even market. We don’t set prices, we take what the buyers offer.
This will always lead to break even.
Some years a scare of shortage will drive the market up into profitable levels, but an equal number of years will be surplus and drive prices below cost of production.
Then, tax laws squeeze a farmer into only gaining assets, not gaining cash, even on the years that are profitable. On money you make to the good, you can pay 33-50% to the govt, or you can buy a piece of land or a tractor. Well, what would you do? You buy something, but yhat means you remain cash poor.
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Today's Featured Article - Seeing an Old Friend - by Joe Evans. Dad had a concrete contracting business starting in 1960. One of his first pieces of equipment was a Ferguson TO-35 with a Davis loader. Dad replaced the TO-35 with a MF 202 Workbull, essentially an industrialized Ferguson 35 I am told. Dad bought the 202 new in 1962, and I recall quite clearly going to the dealer with him to sign for it.
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