Tough year for US farmers?

[AllisWD45]

What will Trudeau do to Agriculture?

[grefer]

I agree with grassy. Subsidies get ate up by your suppliers,landlords,etc. In our area and I expect others too some farmers need a bad year or two for a reality check. They have had a string of very good years and think it will never end. Surely after all those good years they should be able to make ends meet without running to govt's with their hand out.

[bucket]

But you can't compete with farmers that grow 200 bpa and still get support from government.

If they decide to grow any of the crops we grow like peas canola etc they will quickly put alot of farmers in Canada out of business no matter how many good years you have had.

[fjlip]

That is the issue as I see it, bucket, the way ag is treated differently, gives others an advantage over us and our economy. Actually the benefits in the US is to all suppliers NOT just the farmers. A price downturn does not make as wild a swing in spending as it will here when we try to reduce costs. On the negative side is the US farmers will try to grow another massive crop with normal inputs, that if it turns out will further depress prices for all of us.

[charliep]

Will regret posting this but here are some interesting comments on the US situation. I note the real challenges farmers will face are debt structure, land costs and machinery purchase decisions.

[URL="http://brownfieldagnews.com/2014/08/12/the-end-to-the-era-of-grain/"]listen to the audio[/URL]
<a href="

[Klause]

Some of you guys need to understand how the US works... You'd get eaten alive farming down there.


Growing corn and beans (especially corn) is input intensive. Makes canola look like a cheap alternative.

Add to that 250/acre rent.

Tell me how they make so much money with 500-700/acre costs and $2 corn.




Alberta has the exact same programs as the US for the most part. Revenue insurance is part of crop insurance there.


Yet few use it cause it's expensive as all heck.


In Dekalb, Il, rents are up around that 300/acre mark now... some even higher.

What's your per acre per year cost on land that's $12,000/acre, financing it?

You realise you can't notill corn and forget about it till harvest. Very often you need to do primary tillage. Then plant. Then side dress once, sometimes twice. Spray upteen times.

Harvest. Get rid of the stalks. Run a disk through or have a chopping head or bale the stover.

Don't forget drying costs. Propane/nat gas isn't that cheap.

[charliep]

Actually Alberta doesn't have a revenue insurance anymore. We used to have a small one but gone for a few years. There is still a price insurance program (spring price endorsement) but that is optional, required a decision last spring and has premium costs.

Been so long since US programs have paid out so I have forgotten the mechanics but changes have occurred which will reduce benefits.

[grassfarmer]

"Alberta has the exact same programs as the US for the most part."
Not quite LOL, the entitlement only extends as far as the governing party here.